What is the equity multiplier and return on equity

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Reference no: EM132068620

1. If Roten Rooters, Inc., has an equity multiplier of 1.63, total asset turnover of 2.50, and a profit margin of 4.3 percent, what is its ROE? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

ROE %

2. SME Company has a debt-equity ratio of .80. Return on assets is 8.7 percent, and total equity is $515,000.

3. What is the equity multiplier? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.)

Equity multiplier

4. What is the return on equity? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Return on equity %

5. What is the net income? (Do not round intermediate calculations. Round your answer to the nearest whole number, e.g., 32.)

Net income $

Reference no: EM132068620

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