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Kodi Company has a debt-equity ratio of .60. Return on assets is 7.7 percent, and total equity is $520,000. a. What is the equity multiplier?

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Kodi Company has a debt-equity ratio of .60. Return on assets is 7.7 percent, and total equity is $520,000. a. What is the equity multiplier? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the return on equity? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c. What is the net income? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) In response to complaints about high prices, a grocery chain runs the following advertising campaign: "If you pay your child $7 to go buy $100 worth of groceries, then your child makes twice as much on the trip as we do." You've collected the following information from the grocery chain's financial statements: a. What is the profit margin for the child as a percentage of what they spend and the profit margin for the store? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the store's ROE? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

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