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Isolation Company has a debtequity ratio of .80. Return on assets is 7.9 percent, and total equity is $480,000. 1. What is the equity multiplier?

Isolation Company has a debt–equity ratio of .80. Return on assets is 7.9 percent, and total equity is $480,000.

1. What is the equity multiplier?

2. What is the return on equity?

3. What is the net income?

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