Marshall Networks, Inc. has a total asset turnover of 2.5% and a net profit margin of 3.5%.

Marshall Networks, Inc. has a total asset turnover of 2.5% and a net profit margin of 3.5%. The firm has a return on equity of 17.5%. Calculate Marshall’s debt ratio.
A.
40%
B.
50%
C.
30%
D.
60%

Solution