QUESTION 3 Use the following information for MGB, Inc. for this problem 12,500 9,200 15.500 37,200 50,164 87,364 7,000 5,600 12,600 20,000 MSB Inc. Assets Current assets Cash Accounts receivable Inventory Total Fixed assets Net plant and equipment Total assets Liabilities and owners' equity Current liabilities Accounts payable Notes payable Total Long-term debt Owners' equity Common stock and paid-in surplus Accumulated retained earnings Total Total liabilities and owners' equity Income statement Sales -Cost of goods sold Gross Margin -SG&A -Depreciation EBIT -Interest paid Taxable income Taxes Net income 32,440 22,324 54,764 87,364 72,000 26,200 45,800 18,000 3,600 24,200 2,000 22.200 6,660 15.540 30% Dividends Retained earnings 40% 60% 6,216 9,324 Shares of stock outstanding Market price per share 15,000 29 What is the equity multiplier and price to earnings (PE) ratio