24. Namak Co. has an ROE=20%, TATO = 2.5, Equity multiplier of 3, and sales =$30,000. Calculate the approximate value of net income generated by the company? * a) $500 b) $100,000 c) $800 d) $30,000 e) None of the above

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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24. Namak Co. has an ROE=20%,
TATO = 2.5, Equity multiplier of 3, and
sales =$30,000. Calculate the
approximate value of net income
generated by the company? *
a) $500
b) $100,000
c) $800
d) $30,000
e) None of the above
Transcribed Image Text:24. Namak Co. has an ROE=20%, TATO = 2.5, Equity multiplier of 3, and sales =$30,000. Calculate the approximate value of net income generated by the company? * a) $500 b) $100,000 c) $800 d) $30,000 e) None of the above
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