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Esport Electronics expects the following numbers for next year: Sales: $2,500,000 Costs: $1,000,000...

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Esport Electronics expects the following numbers for next year: Sales: $2,500,000 Costs: $1,000,000 (excluding depreciation) Depreciation: $200,000 Interest: 100,000 Tax rate: 26% Total asset turnover: 3 Total debt ratio: 40% . Part 1 IB Attempt 4/5 for 9.4 pts. What is the expected profit margin? 3+ decimals IB Attempt 1/5 for 10 pts. Part 2 What is the expected equity multiplier? 1.67 Correct With a total debt ratio of 40%, Esports uses $0.4 of debt for each $1 of assets. Therefore, the company uses $0.6 of equity for each $1 of assets: Total assets 1 Equity multiplier = = 1.667 Total equity 0.6 IB Attempt 1/5 for 10 pts. Part 3 What is the expected return on equity? 2+ decimals

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