Fresh Foods has sales of $216,500, total assets of $196,200, a debt- equity ratio of 2.15, and a profit margin of 2.9 percent. What is the equity multiplier?
Fresh Foods has sales of $216,500, total assets of $196,200, a debt- equity ratio of 2.15, and a profit margin of 2.9 percent. What is the equity multiplier?
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
Question
Correct answer
![Fresh Foods has sales of $216,500,
total assets of $196,200, a debt-
equity ratio of 2.15, and a profit
margin of 2.9 percent. What is the
equity multiplier?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F80dad082-a9ab-4c09-bd3e-47c03f83a023%2F01ee236f-c5c0-4bed-8939-9cc31c3a2e0c%2Fmo69mg_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Fresh Foods has sales of $216,500,
total assets of $196,200, a debt-
equity ratio of 2.15, and a profit
margin of 2.9 percent. What is the
equity multiplier?
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