Intermediate Financial Management
Intermediate Financial Management
14th Edition
ISBN: 9780357516782
Author: Brigham, Eugene F., Daves, Phillip R.
Publisher: Cengage Learning
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Chapter 7, Problem 6P
Summary Introduction

To determine: The company’s total asset turnover and firm’s equity multiplier.

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Gardial & Son has an ROA of 12%, a 5% profit margin, and a return onequity equal to 20%. What is the company’s total assets turnover? What isthe firm’s equity multiplier?
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