Best writers. Best papers. Let professionals take care of your academic papers

Order a similar paper and get 15% discount on your first order with us
Use the following coupon "FIRST15"
ORDER NOW

calculate the deb ratio Given the following information for the Duke Tire Company, find the firm’s debt ratio (i.e., total liabilities / total assets): ROE (N/E) = 0.38 (expressed as a decimal) Total asset turnover ratio (S/A) = 4.6 Net profit margin (N/S) = 0.09 (expressed as a decimal) i have calculated the answer using this formulae ROE= Net profit margin*Total Asset Turnover *debt ratio =>debt ratio = ROE/(Net profit margin*Total Asset Turnover) i found => Debt ratio = 0.38/(0.09*4.6) =0.91 the teacher stated the result is -8.9 which does not make sense to me hoe it was found but why it is negative

/in /by

calculate the deb ratioGiven the following information for the Duke Tire Company, find the

firm’s debt ratio (i.e., total liabilities / total assets):

ROE (N/E) = 0.38  (expressed as a decimal)

Total asset turnover ratio (S/A) = 4.6

Net profit margin (N/S) = 0.09 (expressed as a decimal)

i have calculated the answer using this formulae

ROE= Net profit margin*Total Asset Turnover *debt ratio

=>debt ratio = ROE/(Net profit margin*Total Asset Turnover)

i found

=> Debt ratio = 0.38/(0.09*4.6)

=0.91 the teacher stated the result is -8.9 which does not make sense to me hoe it was found but why it is negative

 
Looking for a Similar Assignment? Order now and Get 10% Discount! Use Coupon Code "Newclient"