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Willow Enterprises has a debt-to- equity ratio of 1.75, an ROA of 7.5%, and total equity of $800,000. Compute the company's: . Equity Multiplier • Debt Ratio • Return on Equity (ROE)

Willow Enterprises has a debt-to- equity ratio of 1.75, an ROA of 7.5%, and total equity of $800,000. Compute the company's: . Equity Multiplier • Debt Ratio • Return on Equity (ROE)

Entrepreneurial Finance
Entrepreneurial Finance
6th Edition
ISBN:9781337635653
Author:Leach
Publisher:Leach
Chapter5: Evaluating Operating And Financial Performance
Section5.4: Leverage Ratios
Problem 1CC
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Calculate equity multiplier, debt ratio and return on equity accounting question

Willow Enterprises has a debt-to- equity ratio of 1.75, an ROA of 7.5%, and total equity of $800,000. Compute the company's: . Equity Multiplier • Debt Ratio • Return on Equity (ROE)
Transcribed Image Text:Willow Enterprises has a debt-to- equity ratio of 1.75, an ROA of 7.5%, and total equity of $800,000. Compute the company's: . Equity Multiplier • Debt Ratio • Return on Equity (ROE)
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