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Calculate Clayton's profit margin and debt ratio step by ste

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Calculate Clayton's profit margin and debt ratio step by step.

Sales/total assets 1.5
Return on assets 3%
Return on equity 5%

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Solution Summary

Calculate Clayton's profit margin and debt ratio step by step.

Sales/total assets 1.5
Return on assets 3%
Return on equity 5%

Solution Preview

The company's return on assets = the profit margin x the asset turnover ratio. ...

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