Question

Garwryk, Inc., which is financed with debt and​ equity, presently has a debt ratio of 79 percent. What is the​ firm's equity​ multiplier? How is the equity multiplier related to the​ firm's use of debt financing​ (i.e., if the firm increased its use of debt financing would this increase or decrease its equity​ multiplier)? Explain. What is the​ firm's equity​ multiplier? The equity multiplier is given​ by: Equity Multiplier equals StartFraction 1 Over 1 minus Debt Ratio EndFraction The equity multiplier is given​ by: Equity Multiplier equals StartFraction 1 Over 1 minus Debt Ratio EndFraction The equity multiplier is ____​(Round to two decimal​ places.) --- Bryley, Inc. earned a net profit margin of 5.0 percent last year and had an equity multiplier of 3.00. If its total assets are $ 100 million and its sales are $ 150 ​million, what is the​ firm's return on​ equity? The​ company's return on equity is nothing​%. ​(Round to one decimal​ place.)

Answer 1

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