1. Equity Multiplier and Return on Equity. Quinn Company has a debt–equity ratio of .75. Return on assets is 8.6 percent, and total equity is $975,000. What is the equity multiplier Return on equity? Net income?
2. An MNC makes a 60- day USD 50 million ECP issue. If the issue was priced at a discount of 4.2 percent (annualized, simple interest actual/ 360 convention) and fees totaled USD 200,000, what is the cost of financing? Format x.xx%.