21. The Saw Mill has a return on assets of 6.1 percent, a total asset turnover r

Question

21.          The Saw Mill has a return on assets of 6.1 percent, a total asset turnover rate of 1.8, and a debt-equity ratio of 1.6. What is the return on equity?

A.            4.26 percent

B.            9.76 percent

C.            12.28 percent

D.            15.86 percent

E.            19.03 percent

22.          Joshua's Antiques has a total asset turnover rate of 1.2, an equity multiplier of 1.4, a profit margin of 5 percent, a retention ratio of 0.8, and total assets of $120,000. What is the sustainable growth rate?

A.            6.98 percent

B.            7.20 percent

C.            7.33 percent

D.            7.54 percent

E.            7.91 percent

Explanation / Answer

answer 21

B.            9.76 percent

answer 22

B.            7.20 percent

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