1.Equi Multiplier = 1+ debt/Equity. Since debt-equity is 0.6, The equity multiplier is 1+0.6 = 1.60
2. Debt/Equity = 0.6 and Equity = 510,000. So debt is 0.6*510,000 = 306,000. So Total debt + equity = 306,000 + 510,000 = 816,000.
So total assets = Total debt and equity = 816,000
hence net profit = 816,000*0.079 = 64,464
Therefore ROE = 64,464/510000 = 0.1264= 12.64%
3. The net Profit = net income = $64,464.
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