Using the du pont method, evaluate the effects of the following relationships for the butters corporation. a. butters corporation has a profit margin of 8 percent and its return on assets (investment) is 17.75 percent. what is its assets turnover? (round your answer to 2 decimal places.) b. if the butters corporation has a debt-to-total-assets ratio of 30.00 percent, what would the firm’s return on equity be? (input your answer as a percent rounded to 2 decimal places.) c. what would happen to return on equity if the debt-to-total-assets ratio decreased to 25.00 percent? (input your answer as a percent rounded to 2 decimal places.)

Match each of the terms below with an example that fits the term. a. fungibility the production of gasoline b. inelasticity the switch from coffee to tea c. non-excludability the provision of national defense d. substitution the demand for cigarettes

Variable rate cd’s = $90 treasury bills = $150 discount loans = $20 treasury notes = $100 fixed rate cds = $160 money market deposit accts. = $140 savings deposits = $90 fed funds borrowing = $40 variable rate mortgage loans $140 demand deposits = $40 primary reserves = $50 fixed rate loans = $210 fed funds lending = $50 equity capital = $120 a. develop a balance sheet from the above data. be sure to divide your balance sheet into rate-sensitive assets and liabilities as we did in class and in the examples. b. perform a standard gap analysis and a duration analysis using the above data if you have a 1.15% decrease in interest rates and an average duration of assets of 5.4 years and an average duration of liabilities of 3.8 years. c. indicate if this bank will remain solvent after the valuation changes. if so, indicate the new level of equity capital after the valuation changes. if not, indicate the amount of the shortage in equity capital.

Abus pass costs $5 per week. which of the following equations shows the total cost in dollars, t, of the bus pass for a certain number of weeks, w? t = 5w w = 5t t = 5 + w w = 5 + t