Question 1 A firm has sales of $350000 a profit margin of 6 percent a total asset turnover rate of 1.25 and an equity multiplier of 1.4. What is the return on equity? 10.50 percent 7.50 percent 7.75 percent 11.11 percent 5.36 ercent Question 2 ABC has total sales of $192 assets of $108 return on equity of 23% and net profit margin of 7%. What is the debt ratio? Enter you answer in percentages rounded off to two decimal points. Do not enter % in the answer box. Question 3 If the debt ratio is 0.60 the Debt/Equity Ratio is: 1.25 0.25 1.20 0.20 0.80 1.5 Question 4 The ability of the firm to pay off short-term obligations as they come due is indicated by: My Grade Point Average Turnover Ratios Liquidity Ratios Profitability Ratios
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