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# If a company has an Return on Assets of 10 percent a 2 percent profit margin and a return on equity equal to 15 percent what is the company's total assets turnover and the equity multiplier?

###### Wiki User

###### 2007-07-31 06:19:04

Company's Total Assets Turnover Ratio is 5 and Equity multiplier

is 1.5 times which is cal. as Net Sales/Total Assets and Total

Assets/ Shareholder's equity resp. for the two ratios.

## Related Questions

###### Asked in Business Accounting and Bookkeeping, Investing and Financial Markets

### Breckenridge Ski Company has total assets of 422235811 and a debt ratio of 29.5 percent Calculate the companys debt-to-equity ratio and the equity multiplier?

What is given is: total assets = $422,235,811 Debt ratio = 29.5%
Find: debt-to-equity ratio Equity multiplier Debt-to-equity ratio =
total debt / total equity Total debt ratio = total debt / total
assets Total debt = total debt ratio x total assets = 0.295 x
422,235,811 = 124,559,564.2 Total assets = total equity + total
debt Total equity = total assets - total debt = 422,235,811 -
124,559,564.2 = 297,676,246.8 Debt-to-equity ratio = total debt /
total equity = 124,559,564.2 / 297,676,246.8 = 0.4184 Equity
multiplier = total assets / total equity = 422,235,811 /
297,676,246.8 = 1.418

###### Asked in Math and Arithmetic, DIY Projects

### How do you calculate percent change with zero?

Percent change represents a change as a portion or a multiplier
of the base number. So if you start with n=10 and end up with m=15,
your percent change is the difference (5) divided by the base (10),
which is 0.5, or 50%.
When your base gets really, really small (close to zero), your
percent change gets really, really large (in mathematical terms, it
approaches infinity). When your base is actually zero, the percent
change has no meaning, since there is no such thing as a portion
(or a multiplier) of nothing.