Multiple choice

Question 1

XYZ earned a net profit margin of 4.6% last year and had an equity multiplier of 3.8. If its total assets are $97 million and its sales are 194 million, what is the firm's return on assets?

Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box.

Question 2

If the debt ratio is 0.80, the Equity Multiplier is:

0.8

0.2

1

5

1.8

4

Question 3

If the debt ratio is 0.75, the Debt/Equity Ratio is:

0.75

0.25

1

5

1.75

3

Question 4

A firm has total equity of $70,312.50, a profit margin of 8 percent, an equity multiplier of 1.6, and a total asset turnover of 1.3. What is the amount of the firm s sales?

$91,406

$112,500

$121,500

$137,500

$146,250