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Refer to the information below to answer questions relating to Essay Problem #2: Assume Meyer Corporation is 75 percent debt and 25 percent equity financed
Refer to the information below to answer questions relating to "Essay" Problem #2:
Assume Meyer Corporation is 75 percent debt and 25 percent equity financed and has:
(1) Earnings before taxes = $1,500
(2) Sales = $5,000
(3) Dividend payout ratio = 60%
(4) Sales/Total Assets = 2.0
(5) Applicable tax rate = 30%
Calculate the companys debt-equity ratio, company's equity multiplier, total debt ratio, profit margin, Return on assets (ROA), return on equity (ROE)
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