Based on the following information, calculate the equity multiplier, return on equity, and the sustainable growth rate. Profit margin: 7.5%, capital intensity ratio: 0.65, debt - equity ratio: 0.60, net income: $67,000, dividends: $16,000. What is the equity multiplier? What is the return on equity? What is the sustainable growth rate

Fundamentals of Financial Management, Concise Edition (MindTap Course List)
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ISBN:9781305635937
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Eugene F. Brigham, Joel F. Houston
Chapter4: Analysis Of Financial Statements
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Based on the following information, calculate the equity
multiplier, return on equity, and the sustainable growth
rate. Profit margin: 7.5%, capital intensity ratio: 0.65,
debt - equity ratio: 0.60, net income: $67,000,
dividends: $16,000. What is the equity multiplier?
What is the return on equity? What is the sustainable
growth rate
Transcribed Image Text:Based on the following information, calculate the equity multiplier, return on equity, and the sustainable growth rate. Profit margin: 7.5%, capital intensity ratio: 0.65, debt - equity ratio: 0.60, net income: $67,000, dividends: $16,000. What is the equity multiplier? What is the return on equity? What is the sustainable growth rate
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