Kindle Fire Prevention Corp. has a profit margin of 4.8 percent, total asset turnover of 2.0

Kindle Fire Prevention Corp. has a profit margin of 4.8 percent, total asset turnover of 2.0, and ROE of 19.34 percent. What is this firm’s debt–equity ratio? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

Debt–equity ratio

ROE = (PM)(TAT)(EM)
ROE = 0.1934 = (0.048)(2.00)(EM)

EM = 0.1934 / (0.048)(2.00) = 2.01

D/E = EM – 1 = 2.01 – 1 = 1.01

Perry, Inc., has a total debt ratio of 0.36. What is its debt–equity ratio? (Round your answer to 2 decimal places. (e.g., 32.16))

Debt–equity ratio

What is its equity multiplier? (Round your answer to 2 decimal places. (e.g., 32.16))

Equity multiplier