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Page 5 of 5 Question 5 (1 point) A firm has sales of $428,000 and net income of $36,000. The total asset turnover is 1.2

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Page 5 of 5 Question 5 (1 point) A firm has sales of $428,000 and net income of $36,000. The total asset turnover is 1.2 and the debt-equity ratio is 0.4. What is the return on equity? (Hint: use the Du Pont identity formula and convert the debt-equity ratio to the equity multiplier first.) 1) 10.50% 2) 14.13% 3) 9.81% 4) 12.74% Page 5 of 5 Previous Page Next Page

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