A company has a debt-to-equity ratio of 0.75. Which of the following represents its equity multiplier? a. 1.25 b. 1.75 c. 2.00 d. 2.25 e. 2.50

Entrepreneurial Finance
6th Edition
ISBN:9781337635653
Author:Leach
Publisher:Leach
Chapter5: Evaluating Operating And Financial Performance
Section5.4: Leverage Ratios
Problem 1CC
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A company has a debt-to-equity ratio of 0.75. Which of the following
represents its equity multiplier?
a. 1.25
b. 1.75
c. 2.00
d. 2.25 e. 2.50
Transcribed Image Text:A company has a debt-to-equity ratio of 0.75. Which of the following represents its equity multiplier? a. 1.25 b. 1.75 c. 2.00 d. 2.25 e. 2.50
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