Question: Info Technics Inc. has total assets equal to $1,000,000. Its total current liabilities equal $200,000 and it has no short-term debt. The firm's total equity

Info Technics Inc. has total assets equal to $1,000,000. Its total current liabilities equal $200,000 and it has no short-term debt. The firm's total equity equals $500,000.

What is the firm's equity multiplier?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

The equity multiplier also known as the leverage ratio is a ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Read the case study "Southwest Airlines," found in Part 2 of your textbook. Review the "Guide to Case Analysis" found on pp. CA1 - CA11 of your textbook. (This guide follows the last case in the...

Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...

The consolidated statement of financial position for MIC as at 31 March 2009 and its comparative for 2008 are shown below: The consolidated income statement for MIC for the year ended 31 March 2009...

Info Technics Inc. has total assets equal to $1,000,000. Its total current liabilities equal $200,000 and it has no short-term debt. The firms total equity equals $500,000. What is the firms total...

Statement of Earnings For the year ended December 31, 2020 (in thousands of dollars) Sales $1,640 Cost of sales 1800 Gross profit 840 Pepreciation expense Selling and administrative expenses Earnings...

Utilize the 2017 financial statements, annual reports, horizontal and vertical analysis for Target to calculate the following ratio. Calculate the operating margin for Target Corporation. 5.9% 7% 3%...

Need help filling out the Journals July 2021 Transactions July 1 UDUD Date Description of the Transaction Borrow $35,000.00 from 1st Bank by signing a 24 month note. (As an example of how to...

KRAYDEN'S CYCLE COMPONENTS INTRODUCTION: COMPANY, PRODUCT, AND SUPPLY CHAIN Krayden's Cycle Components (KCC) is a high-end specialty fabricator that manufactures one product with many variants. The...

Utilize the 2017 financial statements, annual reports, horizontal and vertical analysis for Target to calculate the following ratio. Calculate the profit margin for Target Corporation. Multiple...

Utilize the 2017 financial statements, annual reports, horizontal and vertical analysis for Target to calculate the following ratio. Calculate the return on assets for the Target Corporation. Average...

Aim: We want to compare the performance of the 2 sample t-test and the Wilcoxon test in this exercise. We fix the (nominal) level of these tests at a=5%. This will be achieved through simulations...

Company has profit margin of 13%, a dividend pay out of 45%. Last year sales were $1000 million, and total assets were $700 million . Non of Libraries very with sales, but assets and cost do . If the...

Use power series operations to find the Taylor series at x = 0 for the x 2 1 - 7 x The Taylor series for 1 1 - x is a commonly known series. What is the n = 0 , ( Type an exact answer. ) 1 1 3 I...

Headlands Company has the following investments as of December 31, 2017: Investments in the common stock of Laser Company $1,430,000 Investment in debt securities of FourSquare Company $3,090,000 In...

The standard deviation of a process is 50. If a sample of 25 items is chosen from the process, what is the standard deviation of the sample?

For the truss structure Determine the governing equilibrium equation. Pf = KffU; + Pro Consider the applied loads and a distributed load wy = 5kN/m on member AC in the direction shown. Member AB is...

Which one of the following ratios is given the highest significance rating by controllers?A Earnings per share.B Return on equily after tax.C Return on assets after tax.D Price / Earnings ratio.

Jan Volk, financial manager of Green Sea Services (GSS), has been asked by her boss to review GSS's outstanding debt issues for possible bond refunding. Five years ago, GSS issued $40,000,000 of 9%,...

Green Day Packers (GOP) purchased a computer for its back office operations in 2011 (assume 45% CCA) for $5,000. Because of expanding operations, GOP purchased two additional computers in 2013 for...

Zinn Company plans to issue $10,000,000 of 10-year bonds in June to help finance a new research and development laboratory. The bonds will pay interest semiannually. It is now November, and the...

7. What process ensures that the spinal cord has the right number of axons to innervate all the muscle cellspg105

6. If axons from the retina were prevented from showing spontaneous activity during early development, what would be the probable effect on development of the lateral geniculatepg105

5. If all cells in an amphibians tectum produced the same amount of TOPDV, what would be the effect on the attachment of axonspg105