Emerald Corporation has a debt ratio of 45.60% (45.60% of assets are financed with debt). Return on assets is 11.4%, operating profit margin is 27.33%, net profit margin is 12.09%, and total asset turnover is 1.02. What is Emeralds return on equity? HINT: Use DuPont ROE. You must figure out the equity multiplier (use the Accounting Identity and Debt ratio to figure out equity multiplier).

DuPont ROE = net profit margin x total asset turnover x equity multiplier

You are given net profit margin and total asset turnover, but you are not given the equity multiplier (TA/TE)

The debt ratio (45.60%) tells you that 45.60% of the firm's assets were financed with liabilities. This means that 100 - 45.60 = 54.40% of the assets were financed with equity.

So, equity multiplier = 100/54.40

Group of answer choices

5.62%

22.67%

18.50%

53.02%

3.18%