Blossom Company has a debt-to-equity ratio of 1.40, an ROA of 8.0 percent, and a total equity of $1,000,000. What are the company's equity multiplier, debt ratio, and ROE? (Round equity multiplier to 2 decimal places, e.g. 12.55, debt ratio to 3 decimal places, e.g. 12.55, and ROE to 1 decimal place, e.g. 12.5%.)

Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 49E
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Blossom Company has a debt-to-equity ratio of
1.40, an ROA of 8.0 percent, and a total equity
of $1,000,000. What are the company's equity
multiplier, debt ratio, and ROE? (Round equity
multiplier to 2 decimal places, e.g. 12.55, debt
ratio to 3 decimal places, e.g. 12.55, and ROE to
1 decimal place, e.g. 12.5%.)
Transcribed Image Text:Blossom Company has a debt-to-equity ratio of 1.40, an ROA of 8.0 percent, and a total equity of $1,000,000. What are the company's equity multiplier, debt ratio, and ROE? (Round equity multiplier to 2 decimal places, e.g. 12.55, debt ratio to 3 decimal places, e.g. 12.55, and ROE to 1 decimal place, e.g. 12.5%.)
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