A firm has a return on assets of 12 percent and a return on


1. A firm has assets of $1,800,000 and turns over its assets 1.5 times per year. Return on assets is 25 percent. What is its profit margin (return on sales)?

2. A firm has a return on assets of 12 percent and a return on equity of 18 percent. What is the debt-to-total assets ratio?

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Finance Basics: A firm has a return on assets of 12 percent and a return on
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