What is the firms equity multiplier

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Reference no: EM131903359

1. Given the following information for the Duke Tire Company, find the firm's debt ratio (i.e., total liabilities / total assets):

ROE (N/E) = 0.33 (expressed as a decimal)

Total asset turnover ratio (S/A) = 2.2

Net profit margin (N/S) = 0.07 (expressed as a decimal)

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2. Given the following information for the Duke Tire Company, find ROA (Return on Assets):

Debt ratio (D/A) = 0.21 (expressed as a decimal)

Total asset turnover ratio (S/A) = 1.25

Sales (S) = $10,000

Net profit margin = 0.08 (expressed as a decimal)

3. if a firm has a debt ratio (i.e., D/A) of 50%, what is the firm's debt to equity (i.e., D/E) ratio?

4. If ROA (return on assets) = 7% and if ROE (return on equity) = 42%, what is the firm's equity multiplier (i.e., Total assets/Equity).

Reference no: EM131903359

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