Rippard\'s has d debt ratio of 25 percent, d total asset turnover ratio 1:4 and return an equity (ROE) of 42 percent. Compute Rippard\'s net profit margin. (Record your answer ds, d percent rounded to one decimdl pldce but do not include the percent sign in your dnswer. Thus, record.32184 =32.1% as 32.1). your answer: 22.5 Solution Debt Ratio= 25% i.e. Equity = 75% Asset Turnover Ratio= 1.4 Sales/Total Assets=1.4 Therefore, Sales= 1.4* Total Assets ROE=42% Net Income/Shareholders Equity= 42% Therefore, Net Income=0.42*Equity NI= 0.42(Sales/1.4) NI/Sales=0.3=30%.