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.  30%
b.  40%
c.  50%
d.  60%

 

Solution