Clear stream Analytics has a debt-equity ratio of 0.70. The company's Return on Assets (ROA) is 8.4%, and its total equity is $1,050,000. Required: 1. What is the company's equity multiplier? 2. What is the company's Return on Equity (ROE)? 3. What is the company's net income?

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
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I need help with this financial accounting question using standard accounting techniques.

Clear stream Analytics has a debt-equity ratio of 0.70. The
company's Return on Assets (ROA) is 8.4%, and its total equity is
$1,050,000.
Required:
1. What is the company's equity multiplier?
2. What is the company's Return on Equity (ROE)?
3. What is the company's net income?
Transcribed Image Text:Clear stream Analytics has a debt-equity ratio of 0.70. The company's Return on Assets (ROA) is 8.4%, and its total equity is $1,050,000. Required: 1. What is the company's equity multiplier? 2. What is the company's Return on Equity (ROE)? 3. What is the company's net income?
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