A firm has a debt ratio of 0.55. What is the equity multiplier? a. 1.82 b. 0.45 c. 2.22 d. 1.55

Entrepreneurial Finance
6th Edition
ISBN:9781337635653
Author:Leach
Publisher:Leach
Chapter5: Evaluating Operating And Financial Performance
Section5.4: Leverage Ratios
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A firm has a debt ratio of 0.55.
What is the equity multiplier?
a. 1.82
b. 0.45
c. 2.22
d. 1.55
Transcribed Image Text:A firm has a debt ratio of 0.55. What is the equity multiplier? a. 1.82 b. 0.45 c. 2.22 d. 1.55
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