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LongGone Corp. had total operating expenses of $84 million last year, including depreciation, and paid $5.2 million in interest. The company also paid out $72
LongGone Corp. had total operating expenses of $84 million last year, including depreciation, and paid $5.2 million in interest.
The company also paid out $72 million in dividends, while the addition to retained earnings increased equity by 10%.
The average tax rate was 34% and the average interest rate on the company's debt was 6.9%. The payout ratio was 60%. What was the profit margin?
What was equity at the end of the year, before the addition of retained earnings (in $ million)? What was the equity multiplier?
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