Fresh Foods has sales of $213,600, total assets of $198,700, a debt-equity ratio of 1.7, and a profit margin of 2.4 percent. What is the equity multiplier? a. 2.84 b. 1.93 c. 2.7 d. 0.73 e. 0.7

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
Problem 6P
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Fresh Foods has sales of $213,600, total
assets of $198,700, a debt-equity ratio of 1.7,
and a profit margin of 2.4 percent. What is the
equity multiplier?
a. 2.84
b. 1.93
c. 2.7
d. 0.73
e. 0.7
Transcribed Image Text:Fresh Foods has sales of $213,600, total assets of $198,700, a debt-equity ratio of 1.7, and a profit margin of 2.4 percent. What is the equity multiplier? a. 2.84 b. 1.93 c. 2.7 d. 0.73 e. 0.7
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