Kim, Inc. has a debt-equity ratio of 0.70. Return on assets is 8.4%, and total equity is $400,000. A) What is the equity multiplier? B) What is the return on equity? C) What is the net income?
Kim, Inc. has a debt-equity ratio of 0.70. Return on assets is 8.4%, and total equity is $400,000. A) What is the equity multiplier? B) What is the return on equity? C) What is the net income?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Kim, Inc. has a debt-equity ratio of 0.70. Return on assets is 8.4%,
and total equity is $400,000.
A) What is the equity multiplier?
B) What is the return on equity?
C) What is the net income?
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