Question: Problem 3-12 Equity Multiplier and Return on Equity [LO3] SME Company has a debt-equity ratio of .80. Return on assets is 7.2 percent, and total

Problem 3-12 Equity Multiplier and Return on Equity [LO3]

SME Company has a debt-equity ratio of .80. Return on assets is 7.2 percent, and total equity is $490,000.

What is the equity multiplier? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.)

Equity multiplier

What is the return on equity? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Return on equity %

What is the net income? (Do not round intermediate calculations. Round your answer to the nearest whole number, e.g., 32.)

Net income $

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