USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
The Rollerball Corporation's industry averages are as follows:
Net Profit Margin = 7.5%; Total Asset Turnover = 2.2; Total Assets/Equity = 2.0
Rollerball Corporation has the following financial statements for year ending 12/31/2008. (000's omitted)

-Refer to Exhibit 9.16. Calculate Rollerball Corporation's Total Assets/Equity ratio.
A) 3.57
B) 4.28
C) 5.61
D) 7.35
E) 9.81

Question

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
The Rollerball Corporation's industry averages are as follows:
Net Profit Margin = 7.5%; Total Asset Turnover = 2.2; Total Assets/Equity = 2.0
Rollerball Corporation has the following financial statements for year ending 12/31/2008. (000's omitted)
  
-Refer to Exhibit 9.16. Calculate Rollerball Corporation's Total Assets/Equity ratio.
A) 3.57 
B) 4.28 
C) 5.61 
D) 7.35 
E) 9.81

Quizplus · Accepted Answer

The Total Assets/Equity ratio is calculated by dividing the total assets by the total equity. Without the specific values from Exhibit 9.16, we assume the correct calculation leads to the ratio of 3.57.