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Debt Calculations

Assume the following relationships for the Johnson Corp.:

Sales/total assets................2.1x
Return on assets (ROA)........4%
Return on equity (ROE).........14%

Calculate Johnson's profit margin assuming the firm uses only debt and common equity. Round your answer to two decimal places.

Calculate Johnson's debt ratio assuming the firm uses only debt and common equity. Round your answer to two decimal places.

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Category:- Basic Finance
Reference No.:- M9866951

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