1. A firm has total assets of $682,000 and total equity of $424,000. What is the debt-equity ratio? PLEASE SHOW YOUR WORK.
A. 1.61
B. .61
C. 1.64
D. .62
E. 3
2. The Jamestown Group has equity of $421,000, sales of $792,000, and a profit margin of 6 percent. What is the return on equity? PLEASE SHOW YOUR WORK.
a. 8.87 percent
b. 6.19 percent
c. 11.29 percent
d. 10.27
e. 9.37
3. Top Sound, Inc., has total assets of $212,000, a debt-equity ratio of .6, and net income of $9,500. What is the return on equity? PLEASE SHOW YOUR WORK.
a. 6.87 percent
b. 7.17
c. 7.34
d. 7.50 percent
e. 7.67 percent