A firm has an equity multiplier of two and total assets of $300. If its return on equity is 10%, what is itsnet income?O $15.00O $10.00O $30.00O $22.50O $7.50

Equity Multiplier = 2 Total Assets = 300 Return on Equity = 10% Net Income = ?

Answered: A firm has an equity multiplier of two…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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A firm has an equity multiplier of two and total assets of $300. If its return on equity is 10%, what is its net income? O $15.00 $10.00 O $30.00 O $22.50 O $7.50