Which of the Following Statements Is Incorrect

Multiple Choice

Which of the following statements is incorrect?

A) The equity multiplier is equal to 1 plus the debt-equity ratio.
B) Return on equity is equal to the return on assets multiplied by the equity multiplier.
C) Return on equity is equal to total equity divided by net income.
D) Return on equity is equal to the equity multiplier multiplied by the total asset turnover multiplied by the profit margin.
E) The difference between the asset multiplier and liability multiplier equals the equity multiplier.