Carter, inc., a manufacturer of electrical supplies, has an roe of 23.1 percent, a profit margin of 3.30 percent, and a total asset turnover ratio of 1.60 times. its peer group also has an roe of 23.1 percent but has out performed carter with a net profit margin of 3.59 percent and a total assets turnover ratio of 2 times. calculate the carter's equity multiplier and peer group equity multiplier.

The Carter's equity multiplier and peer group equity multiplier is 4.375 and 3.21 respectively.

Explanation:

For computing the Return on equity based on equity multiplies the following formula is used which is shown below:

Return on Equity = Net Profit margin × Total assets turnover × Equity multiplier

Since ROE, profit margin and Total assets turnover ratio is given. The Equity multiplier can be easily calculated.

Carter equity multiplier = Return on Equity ÷ (profit margin and Total assets turnover ratio)

= 23.1% ÷ (3.30% × 1.60 times)

= 4.375

Peer group equity multiplier = Return on Equity ÷ (profit margin and Total assets turnover ratio)

= 23.1% ÷ (3.59% × 2 times)

= 3.21

Hence, the Carter's equity multiplier and peer group equity multiplier is 4.375 and 3.21 respectively.

according to the song of roland, the characteristics of an ideal knight are: loyalty to the king, skilled warriors and horseman, valiant, bold, courageous, strong and proud in battle. they should be determined to fulfil their duties and willing to die to make their people safe.