Problem
Last year, Podlecki Manufacturing Industries had an ROE = 9% and its RDA = 6%. Podlecki's total assets equal total debt plus common equity (i.e., there is no preferred stock). Furthermore, we know that the company's profit margin is 3%. Answer the following questions on the basis of this information.
1. What is the company's debt ratio (as measured by debt to total assets)?
2. What is the company's total assets turnover?