Kodi Company has a debt-equity ratio of 1.33. Return on assets is 7.58 percent, and total equity is $665,000.a. What is the equity multiplier?Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.b. What is the return on equity?Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.c. What is the net income?Note: Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.a. Equity multiplierb. Return on equityc. Net incometimes%

A) Equity Multiplier = 1 + Debt-equity ratioEquity Multiplier = 1+ 1.33Equity Multiplier = 2.33…

Answered: Kodi Company has a debt-equity ratio of…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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