Last year, dj's soda fountains, inc. reported an roe = 27 percent. the firm's debt ratio was 50 percent, sales were $9 million, and the capital intensity ratio was 1.5 times. what is the net income for dj's last year? multiple choice a. $1.22m b. $1.82m c. $2.43m d. $2.84m

b. $1.82m

Explanation:

Capital Intensity ratio = Total aasets / sales

1.5 = Total Assets / 9m

Total Assets = 9m x 1.5 = 13.5

ROE = Total Income / Shareholders equity

27% = Total Income / (13.5 x 50%)

27% = Total Income / 6.75

Total Income = 27% x 6.75

Total Income = 1.8225

Total Income = 1.82 (Rounded)

The correct option is b. $1.82m.