Sunflower Company has a debt-to-equity ratio of 0.80, an ROA of 10.0 percent, and a total equity of $2,000,000. What are the company's equity multiplier, debt ratio, and ROE? (Round equity multiplier to 2 decimal places, debt ratio to 3 decimal places, and ROE to 1 decimal place.)

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter3: Evaluation Of Financial Performance
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Sunflower Company has a debt-to-equity ratio of 0.80, an ROA of 10.0 percent,
and a total equity of $2,000,000. What are the company's equity multiplier,
debt ratio, and ROE? (Round equity multiplier to 2 decimal places, debt ratio
to 3 decimal places, and ROE to 1 decimal place.)
Transcribed Image Text:Sunflower Company has a debt-to-equity ratio of 0.80, an ROA of 10.0 percent, and a total equity of $2,000,000. What are the company's equity multiplier, debt ratio, and ROE? (Round equity multiplier to 2 decimal places, debt ratio to 3 decimal places, and ROE to 1 decimal place.)
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