1. Assume that XYZ, Inc. has:
• Debt ratio = 70%
• Net profit margin = 15%
• Return on assets (ROA) = 7.5%
Find XYZ’s Total Asset Turnover ratio. (Enter answer as a ratio – that is, do not convert to a percent).
2. Assume that your firm has ROA of 20.5%, ROE of 42% and Total Asset Turnover ratio of 3.5. Calculate the debt ratio for the firm. (Enter answer as a percent).