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SME Company has a debt-equity ratio of .70. Return on assets is 8.5 percent, and total equity is $540,000. a. What is the equity multiplier?

SME Company has a debt-equity ratio of .70. Return on assets is 8.5 percent, and total equity is $540,000.

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.)

Some recent financial statements for Smolira Golf Corp. follow.

SMOLIRA GOLF CORP. 2017 and 2018 Balance Sheets
Assets Liabilities and Owners Equity
2017 2018 2017 2018
Current assets Current liabilities
Cash $ 34,785 $ 38,204 Accounts payable $ 37,282 $ 42,782
Accounts receivable 18,001 28,126 Notes payable 19,408 16,500
Inventory 3,730 42,792 Other 20,224 24,954
Total $ 56,516 $ 109,122 Total $ 76,914 $ 84,236
Long-term debt $ 117,000 $ 182,015
Owners equity
Common stock and paid-in surplus $ 55,400 $ 55,400
Accumulated retained earnings 271,867 307,704
Fixed assets
Net plant and equipment $ 464,665 $ 520,233 Total $ 327,267 $ 363,104
Total assets $ 521,181 $ 629,355 Total liabilities and owners equity $ 521,181 $ 629,355

SMOLIRA GOLF CORP. 2018 Income Statement
Sales $ 508,454
Cost of goods sold 360,728
Depreciation 44,963
Earnings before interest and taxes $ 102,763
Interest paid 20,083
Taxable income $ 82,680
Taxes (24%) 19,843
Net income $ 62,837
Dividends $ 27,000
Retained earnings 35,837

Smolira Golf Corp. has 44,000 shares of common stock outstanding, and the market price for a share of stock at the end of 2018 was $27.

a.

What is the price-earnings ratio? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

b. What are the dividends per share? (Round your answer to 2 decimal places, e.g., 32.16.)
c. What is the market-to-book ratio at the end of 2018? (Round your answer to 2 decimal places, e.g., 32.16.)
d. If the companys growth rate is 5 percent, what is the PEG ratio? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

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