Using the Du Pont method, evaluate the effects of the following relationships for the Butters Corporation. a.Butters Corporation has a profit margin of 6 percent and its return on assets (investment) is 14 percent. What is its assets turnover? (Round your answer to 2 decimal places.) b.If the Butters Corporation has a debt-to-total-assets ratio of 50.00 percent, what would the firm’s return on equity be? (Input your answer as a percent rounded to 2 decimal places.) c.What would happen to return on equity if the debt-to-total-assets ratio decreased to 45.00 percent? (Input your answer as a percent rounded to 2 decimal places.) eBook & Resources
