Hudson Enterprises has a debt-equity ratio of 0.85. The return on assets (ROA) is 9.2%, and total equity is $500,000. A) What is the equity multiplier? B) What is the return on equity (ROE)?
Hudson Enterprises has a debt-equity ratio of 0.85. The return on assets (ROA) is 9.2%, and total equity is $500,000. A) What is the equity multiplier? B) What is the return on equity (ROE)?
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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Financial Accounting
Transcribed Image Text:Hudson Enterprises has a debt-equity ratio of 0.85. The
return on assets (ROA) is 9.2%, and total equity is $500,000.
A) What is the equity multiplier?
B) What is the return on equity (ROE)?
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