LongGone Corp. had total operating expenses of $84 million last year, including depreciation, and paid $5.2 million in interest.

The company also paid out $49 million in dividends, while the addition to retained earnings increased equity by 60%.

The average tax rate was 34% and the average interest rate on the company's debt was 8%. The payout ratio was 40%.

What was the profit margin?

What was equity at the end of the year, before the addition of retained earnings (in $ million)?

What was the equity multiplier?

Answer rating: 100% (QA)

Profit Margin The profit margin is calculated by dividing the net income by the revenue In this case the net income is calculated by subtracting the t... View the full answer