Riverdale Industries has sales of $625,000, total assets of $510,000, a debt-equity ratio of 0.75, and a profit margin of 4.2 percent. What is the equity multiplier? a. 1.3 b. 1.75 c. 2.1 d. 0.92

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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Riverdale Industries has sales of $625,000, total assets of $510,000, a
debt-equity ratio of 0.75, and a profit margin of 4.2 percent. What is
the equity multiplier?
a. 1.3
b. 1.75
c. 2.1
d. 0.92
Transcribed Image Text:Riverdale Industries has sales of $625,000, total assets of $510,000, a debt-equity ratio of 0.75, and a profit margin of 4.2 percent. What is the equity multiplier? a. 1.3 b. 1.75 c. 2.1 d. 0.92
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