Below are the financial details of DEF Inc.:

Income Statement ($ millions)

• Total Revenue: $3,000
• Cost of Goods Sold: $1,500
• Gross Profit: $1,500
• Operating Expenses: $1,000
• Operating Income: $500
• Interest Expense: $70
• Tax Expense: $50
• Net Income: $380

Balance Sheet ($ millions)

• Assets:
  • Cash: $40
  • Accounts Receivable: $200
  • Inventory: $300
  • Property, Plant & Equipment: $800
  • Other Assets: $160
  • Total Assets: $1,500
• Liabilities:
  • Accounts Payable: $150
  • Short-term Loans: $100
  • Long-term Debt: $450
  • Total Liabilities: $700
• Equity:
  • Common Stock: $50
  • Retained Earnings: $750
  • Total Equity: $800
  • Total Liabilities & Equity: $1,500

Requirements:

a) Propose ways DEF Inc. can finance a $60 million acquisition without using existing cash. b) Calculate the quick ratio. c) Compute the return on assets (ROA). d) Determine the equity multiplier.