High Mountain Foods has an equity multiplier of 1.55, a total asset turnover of 1.3, and a profit margin of 7.5 percent.

Coulter Supply has a total debt ratio of 0.52. What is the equity multiplier?    A.  0.89 B.  1.13 C.  1.47 D.  2.08 E.  2.13 Debt-equity ratio = .52/(1 - 0.52) = 1.083 Equity multiplier = 1 + 1.083 = 2.083

98.	High Mountain Foods has an equity multiplier of 1.55, a total asset turnover of 1.3, and a profit margin of 7.5 percent. What is the return on equity?    A.  8.94 percent B.  10.87 percent C.  12.69 percent D.  14.38 percent E.  15.11 percent Return on equity = .075 × 1.3 × 1.55 = 15.11 percent

99.	Lancaster Toys has a profit margin of 7.5 percent, a total asset turnover of 1.71, and a return on equity of 21.01 percent. What is the debt-equity ratio?    A.  0.42 B.  0.64 C.  0.66 D.  0.72 E.  0.78 Equity multiplier = .2101/(.075 × 1.71) = 1.638 Debt-equity ratio = 1.638 - 1 = 0.638

100.

Charlie's Chicken has a debt-equity ratio of 2.05. Return on assets is 9.2 percent, and total equity is $560,000. What is the net income?    A.  $105,616 B.  $148,309 C.  $157,136 D.  $161,008 E.  $164,909 Equity multiplier = 1 + 2.05 = 3.05 Return on equity = .092 × 3.05 = .2806 Net income = .2806 × $560,000 = $157,136