Hima Company has a debt-equity ratio of 0.56. Return on assets is 9.27 percent, and total equity is $923,000. 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?
Hima Company has a debt-equity ratio of 0.56. Return on assets is 9.27 percent, and total equity is $923,000. 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
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Hima company has a debt- equity ratio of 0.56
![Hima Company has a debt-equity ratio of 0.56. Return on
assets is 9.27 percent, and total equity is $923,000.
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?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F29169d04-e474-49ab-846b-ce478c415c9c%2F38e2bfa4-c856-4d81-86c5-84c75a5cb044%2Fphne5vw_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Hima Company has a debt-equity ratio of 0.56. Return on
assets is 9.27 percent, and total equity is $923,000.
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?
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