Question

12)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.)  
   Assets turnover ratio times  
 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.)    
   Return on equity %       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.)  
   Return on equity%  

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