Wittels Corporation Has Provided the Following Data In Year 2, the Company's Net Operating Income Was $42,571

Wittels Corporation has provided the following data: $\begin{array}{lrr}&\text { Year 2 } & \text { Year 1 } \\\text { Total assets }&\$ 1,253,000 & \$ 1,230,000 \\\text { Total liabilities }&\$ 586,000 & \$ 570,000 \\\text { Total stockholders' equity }&\$ 667,000 & \$ 660,000\end{array}$ In Year 2, the company's net operating income was $42,571, its net income before taxes was $21,571, and its net income was $15,100. The company's equity multiplier is closest to:

A) 1.14
B) 0.53
C) 0.88
D) 1.87

Correct Answer:

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