A firm has a debt-to-equity ratio of 0.5. What is its equity multiplier? a. 1 b. 2.5 c. 3 d. 1.5 e. 2

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 firm has a debt financial accounting

A firm has a debt-to-equity ratio of 0.5. What is its
equity multiplier?
a. 1
b. 2.5
c. 3
d. 1.5
e. 2
Transcribed Image Text:A firm has a debt-to-equity ratio of 0.5. What is its equity multiplier? a. 1 b. 2.5 c. 3 d. 1.5 e. 2
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