1. Suppose a firm has a profit margin of 11.6 percent; total asset turnover of 0.88 and an equity multiplier of 2.1. What is the firm's ROA?

A. 8.2%

B. 8.8%

C. 9.2%

D. 9.8%

E. more than 9.8%

2. Last year Mystery Gadgets, Inc. had a profit margin of 11.5 percent; total asset turnover of 0.82 and an equity multiplier of 2.1. What is the firm's ROE for last year? A. 15.8%

B. 17.2% C. 19.8%

D. 21.4% E. 22.5%

3. If Brass Beds, Inc. has an ROE = 25%, equity multiplier = 3.2, a profit margin of 18.5%, what is the total asset turnover ratio? A. 0.239 B. 0.278 C. 0.320 D. 0.422 E. 0.463

4. You are thinking of investing in Harveys Ice Cream, Inc. You have only the following information on the firm at year-end 2016: net income = $1,852,000, total debt = $9,750,000, and debt ratio = 35%. What is the ROE for Harveys Ice Cream in 2016? A. 10.23% B. 11.87% C. 13.14% D. 15.38%

E. 18.57%

5. You are considering investing in Walters Wares, Inc. You have been able to locate the following information on the firm: total assets = $24 million, accounts receivable = $6 million, ACP = 20 days, net income = $2.86 million, and debt-to-equity ratio = 2.5 times. What is the ROE for the firm? A. 32.5% B. 38.8% C. 41.7% D. 44.5%

E. 48.6%

6. A corporation has a total asset turnover of 1.87 times, ROA of 14.8% and ROE of 18.5%. What is this firm's profit margin?

A. 9.9% B. 9.2% C. 8.5% D. 7.9% E. 6.9%

7. A corporation has a total asset turnover of 1.87 times, ROA of 14.8% and ROE of 18.5%. What is this firm's debt ratio? [Hint: equity multiplier = 1 / (1 debt ratio)]

A. 18.5% B. 20.0% C. 21.2% D. 21.9%

E. 28.1%