Bello Company has a debt-equity ratio of 0.6. Return on assets is 8.8 percent, and total equity is $525,000. a. What is the equity multiplier? b. What is the return on equity? c. What is the net income?

Corporate Fin Focused Approach
5th Edition
ISBN:9781285660516
Author:EHRHARDT
Publisher:EHRHARDT
Chapter3: Analysis Of Financial Statements
Section: Chapter Questions
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Bello Company has a debt-equity ratio of 0.6.
Return on assets is 8.8 percent, and total
equity is $525,000.
a. What is the equity multiplier?
b. What is the return on equity?
c. What is the net income?
Transcribed Image Text:Bello Company has a debt-equity ratio of 0.6. Return on assets is 8.8 percent, and total equity is $525,000. a. What is the equity multiplier? b. What is the return on equity? c. What is the net income?
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