Du pont system of analysis using the du pont method, Ask an Expert

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Du Pont system of analysis Using the Du Pont method, evaluate the effects of the following relationships for the Lollar Corporation. a. Lollar Corporation has a profit margin of 5 percent and its return on assets (investment) is 13.5 percent. What is its assets turnover ratio? b. If the Lollar Corporation has a debt-to-total-assets ratio of 60 percent, what would the firm's return on equity be? c. What would happen to return on equity if the debt-to-total-assets ratio decreased to 40 percent?

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