Sandhill, Inc., a manufacturer of electrical supplies, has an ROE of 23.1 percent, a profit margin of 3.00 percent, and a total asset turnover ratio of 2.00 times. Its peer group also has an ROE of 23.1 percent, but has outperformed Sandhill with a net profit margin of 3.3 percent and a total asset turnover ratio of 2.0 times. Calculate the Sandhill's equity multiplier and peer group equity multiplier. (Round answers to 2 decimal places, e.g.12.55.) Sandhill’s equity multiplier is times, and the peer group equity multiplier is times.

Sandhill, Inc., a manufacturer of electrical supplies, has an ROE of 23.1 percent, a profit margin of 3.00 percent, and a total asset turnover ratio of 2.00 times. Its peer group also has an ROE of 23.1 percent, but has outperformed Sandhill with a net profit margin of 3.3 percent and a total asset turnover ratio of 2.0 times. Calculate the Sandhill's equity multiplier and peer group equity multiplier. (Round answers to 2 decimal places, e.g.12.55.) Sandhill’s equity multiplier is times, and the peer group equity multiplier is times.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter3: Evaluation Of Financial Performance

Section: Chapter Questions

Problem 13P

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