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Given the following balance sheet, income statement, and industry information, use the Dupont method of analyzing the firm's return on equity to answer the following
Given the following balance sheet, income statement, and industry information, use the Dupont method of analyzing the firm's return on equity to answer the following three questions Industry average debt ratio: 0.44 Industry average net profit margin: 6.7 percent Industry average return on equity: 15.9 percent Balance Sheet Income Statement Cash $ 6,800 Sales $191,370 Accounts Receivable $ 15,350 COGS $107,700 Inventory $ 32,170 GP $83,670 Total CA $ 54,320 Cash Oper Exp $39,620 Net Fixed Assets $ 126,400 Depreciation $16,170 Total Oper Exp $55,790 Total Assets $ 180,720 EBIT $27,880 Accounts Payable $ 6,600 Accrued Taxes $ 3,870 Interest $6,750 Accrued Wages $ 7,500 Taxable Income $21,130 Notes Payable $ 10,700 Taxes $7,396 Total CL $ 28,670 Net Income $13,734 Long Term Debt $ 68,000 Total Liabilities $ 96,670 Common Stock $ 42,300 Retained Earnings $ 41,750 Total Equity $ 84,050 Total L&E $ 180,720 What is the industry equity multiplier (EM)? Group of answer choices
Given the following balance sheet, income statement, and industry information, use the Dupont method of analyzing the firm's return on equity to answer the following three questions
Industry average debt ratio: 0.44
Industry average net profit margin: 6.7 percent
Industry average return on equity: 15.9 percent
Balance
Sheet
Income
Statement
Cash
$ 6,800
Sales
$191,370
Accounts Receivable
$ 15,350
COGS
$107,700
Inventory
$ 32,170
GP
$83,670
Total CA
$ 54,320
Cash Oper Exp
$39,620
Net Fixed Assets
$ 126,400
Depreciation
$16,170
Total Oper Exp
$55,790
Total Assets
$ 180,720
EBIT
$27,880
Accounts Payable
$ 6,600
Accrued Taxes
$ 3,870
Interest
$6,750
Accrued Wages
$ 7,500
Taxable Income
$21,130
Notes Payable
$ 10,700
Taxes
$7,396
Total CL
$ 28,670
Net Income
$13,734
Long Term Debt
$ 68,000
Total Liabilities
$ 96,670
Common Stock
$ 42,300
Retained Earnings
$ 41,750
Total Equity
$ 84,050
Total L&E
$ 180,720
What is the industry equity multiplier (EM)?
Group of answer choices
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Investment Analysis and Portfolio Management
Authors: Frank K. Reilly, Keith C. Brown
10th Edition
538482109, 1133711774, 538482389, 9780538482103, 9781133711773, 978-0538482387
