Calculate the return on equity

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Reference no: EM131606300

1. Acme Inc had a total assets turnover of 1.39, an equity multiplier of 1.75, and net income of $11,000 on $295,000 of sales. Calculate the return on equity:

8.71%

9.07%

9.43%

9.11%

836%

2. If the discount rate is 6.5%, the present value of a cash flow of $5,500 obtained 25 years from today would be worth:

$1,139.26

$1,105.50

$1,065.86

$1,022.13

$1,311.17

Reference no: EM131606300

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