27. Jacob Money Inc. has a profit margin of 11% and a retention ratio of 70%. Last year, the firm had sales of $500 and total assets of $1,000. The desired total debt ratio is 75%. What is the firm's sustainable growth rate? A) 7.1% B) 2.5% C) 18.2% D) 4.0% E) 11.3%

31. A Windsor Ontario firm has a net income of $32,000 which provides a 12% return on assets. The firm has a debt-equity ratio of .40. What is the return on equity? A) 12.00% B) 11.67% C) 7.20% D) 8.57% E) 16.80%

32. Using the Du Pont Identity Method, calculate the equity multiplier given the following information: profit margin 14%; total asset turnover 1.7; return on equity 29.08%. A) 1.5 B) 1.4 C) 1.1 D) 1.3 E) 1.2

33. Current assets of the Smart Inc. are $94,700. Accounts payable is $36,200, net income is $12,400 and sales are $110,800. What is the net working capital turnover rate for Smart Inc.? A) 1.68 B) 0.21 C) 1.89 D) 1.17 E) 0.85

What is the best approach to solving these ratio questions?