Giorgio Solutions has a debt-equity ratio of 0.68. Return on assets is 8.75%, and total equity is $810,000. a. What is the company's equity multiplier? b. What is the company's return on equity? c. 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
Problem 6P
icon
Related questions
Question

Giorgio Solutions has a debt-equity ratio of 0.68. Return on assets is 8.75%, and total equity is $810,000. a. What is the company's equity multiplier? b. What is the company's return on equity? c. What is the company's net income?

Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer