Answers2 - c 1. a. b. c. d. e. Frederico's has a profit...

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c 1. Frederico’s has a profit margin of 6 percent, a return on assets of 8 percent, and an equity multiplier of 1.4. What is the return on equity? a. 6.7 percent b. 8.4 percent c. 11.2 percent d. 14.6 percent e. 19.6 percent a 2. A firm has a return on equity of 15 percent. The debt-equity ratio is 50 percent. The total asset turnover is 1.25 and the profit margin is 8 percent. The total equity is $3,200. What is the amount of the net income? a. $480 b. $500 c. $540 d. $600 e. $620 c 3. Patti’s has net income of $1,800, a price-earnings ratio of 12, and earnings per share of $1.20. How many shares of stock are outstanding? a. 1,200 b. 1,400 c. 1,500 d. 1,600 e. 1,800 c 4. Lee Sun’s has sales of $3,000, total assets of $2,500, and a profit margin of 5 percent. The firm has a total debt ratio of 40 percent. What is the return on equity? a. 6 percent b. 8 percent c. 10 percent d. 12 percent e. 15 percent b 5. A firm has net working capital of $400, net fixed assets of $2,400, sales of $6,000, and
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Answers2 - c 1. a. b. c. d. e. Frederico's has a profit...

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