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ABC Company has a debt-to-equity ratio of 7/10. Return on assets (net income divided by total asset) is 10%, and total equity is $840,000. Total
ABC Company has a debt-to-equity ratio of 7/10. Return on assets (net income divided by total asset) is 10%, and total equity is $840,000. Total sales is $1,785,000. Payout ratio of 60%. Which of the following is not true? a. Return on equity is 17%. b. The sustainable growth rate is 8.2%. Oc. Net income is $142,800. Od. The equity multiplier is 1.7. Oe. The net profit margin (net income divided by sales) is 8%
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