Company has a debt-equity ratio of 0.65. Return on assets is 12.5 percent, and total equity is $1,000,000. What is the equity multiplier? Return on equity? Net income?

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter7: Analysis Of Financial Statements
Section: Chapter Questions
Problem 6P
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Company has a debt-equity ratio of
0.65. Return on assets is 12.5 percent, and total
equity is $1,000,000. What is the equity multiplier?
Return on equity? Net income?
Transcribed Image Text:Company has a debt-equity ratio of 0.65. Return on assets is 12.5 percent, and total equity is $1,000,000. What is the equity multiplier? Return on equity? Net income?
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