. A 0.50 (50%) debt-equity ratio would suggest that a firm has: a. 50% of its assets financed with debt b. 33-1/3% of it assets financed with debt c. an Equity Multiplier of 1.667 d. 66-23% of its assets financed with debt
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3. A 0.50 (50%) debt-equity ratio would suggest that a firm has:
a. 50% of its assets financed with debt
b. 33-1/3% of it assets financed with debt
c. an Equity Multiplier of 1.667
d. 66-23% of its assets financed with debt
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- Assume the following relationships for the Caulder Corp.:Sales/Total assets 1.33Return on assets (ROA) 4.0%Return on equity (ROE) 8.0%Calculate Caulder’s profit margin and debt-to-capital ratio assuming the firm uses onlydebt and common equity, so total assets equal total invested capital.ST-4 Sheth Corporation has a return on assets ratio of 6 percent. If the debt to total assets ratio is .5, what is the firm's return on equity?Assuming total invested capital = total assets, which of the following would have the highest equity multiplier? Enter question A. Company A with a debt to capital ratio of 80% B. Company B with a debt to capital ratio of 25% C. Company C with a debt to capital ratio of 60% D. Company D with a debt to capital ratio of 10%
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