Question: 1. Bartley Barstools has an equity multiplier of 2.4. The company's assets are financed with some combination of long-term debt and common equity. What is the company's debt ratio?
2. Doublewide Dealers has an ROA of 10 percent, a 2 percent profit margin, and a return on equity equal to 15 percent. What is the company's total assets turnover? What is the firm's equity multiplier?