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In fiscal year 2020 Chevron (CVX) had revenue of $140 billion, net income of $2.9 billion, and year-end total assets of $237.5 billion. The firms
In fiscal year 2020 Chevron (CVX) had revenue of $140 billion, net income of $2.9 billion, and year-end total assets of $237.5 billion. The firms total-debt-to-total-capital ratio was 35%. The firm finances using only debt and common equity and its total assets equal total invested capital. Based on the DuPont equation, what was the ROE?
I'm quite lost on how to find the equity multiplier. If you could give a detailed explanation for each step for this scenario it would be much appreciated.
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