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Last year, Stumble-on-Inn, Inc. reported an ROE of 20 percent. The firm’s debt ratio was 55 percent, sales were $29 mill...

Last year, Stumble-on-Inn, Inc. reported an ROE of 20 percent. The firm’s debt ratio was 55 percent, sales were $29 million, and the capital intensity was 1.20 times. Calculate the net income for Stumble-on-Inn last year. (Do not round intermediate calculations. Enter your answer in dollars not in millions.)

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Answer #1

Capital intesity = 1.2 = Total Assets = Total Assets = Total Assets/Sales Total Assets/29 millions 1.2*29 Millions 34.8 Milli

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