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Assume the following relationships for the Brauer Corp.:

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

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

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Joshua Stredder
Joshua StredderLv10
28 Jan 2021

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RATIO CALCULATIONS Assume the following for Brauer Corp.:
Sales total assets 1.5x
Return on assets (ROA) 3%
Return on equity (ROE) 5%
Calculate Breuer’s profit margin and debt ration.

NEED ASAP

Assume you are given the following relationships for the Haslam Corporation:

Sales/total assets 1.4
Return on assets (ROA) 4%
Return on equity (ROE) 8%
  1. Calculate Haslam's profit margin. Do not round intermediate calculations. Round your answer to two decimal places.
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  2. Calculate Haslam's liabilities-to-assets ratio. Do not round intermediate calculations. Round your answer to two decimal places.
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  3. Suppose half of Haslam's liabilities are in the form of debt. Calculate the debt-to-assets ratio. Do not round intermediate calculations. Round your answer to two decimal places.
    %

The Patrick Company's year-end balance sheet is shown below. Its cost of common equity is 17%, its before-tax cost of debt is 10%, and its marginal tax rate is 40%. Assume that the firm's long-term debt sells at par value. The firm has 576 shares of common stock outstanding that sell for $4.00 per share. Calculate Patrick's WACC using market value weights. Round your answer to two decimal places.

Assets Liabilities And Equity
Cash $ 120
Accounts receivable 240
Inventories 360 Long-term debt $1,324
Plant and equipment, net 2,160 Common equity 1,556
Total assets $2,880 Total liabilities and equity $2,880

Calculate Patrick's WACC using market value weights. Round your answer to two decimal places.

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