oblem 3-2 Equity Multiplier and Return on Equity Kodi Company has a debt-equity ratio of .86. Return on assets is 10.0 percent, and total equity is $795,000
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Problem 3-2 Equity Multiplier and Return on Equity
Kodi Company has a debt-equity ratio of .86. |
a. |
What is the equity multiplier? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
b. | What is the return on equity? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
c. | What is the net income? (Do not round intermediate calculations.) |
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- Consider this simplified balance sheet for Geomorph Trading: Current assets Long-term assets $ 245 Current liabilities Long-term debt 630 Other liabilities Equity $ 875 Required: a. What is the company's debt-equity ratio? (Hint: debt = Current liabilities, Long-term debt, and Other liabilities) Note: Round your answer to 2 decimal places. b. What is the ratio of total long-term debt to total long-term capital? Note: Round your answer to 2 decimal places. c. What is its net working capital? d. What is its current ratio? Note: Round your answer to 2 decimal places. $ 170 215 140 350 $ 875 a Debt-equity ratio b. Long-term debt-to-capital ratio c. Net working capital d. Current ratioQUESTION 7 If Argos' financial statements indicate that Net Income 5,789, ROE is 31% and the Equity Multiplier is 1.46, calculate their AssetsQUESTION 9 If Argos' financial statements indicate that Net Income 3,264, ROE is 10% and the Equity Multiplier is 1.64, calculate their Assets QUESTION 10
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