If a company has a debt ratio of 0.40, what is its equity multiplier? a. 1.40 b. 1.67 c. 2.00 d. 0.60

Entrepreneurial Finance
6th Edition
ISBN:9781337635653
Author:Leach
Publisher:Leach
Chapter5: Evaluating Operating And Financial Performance
Section5.4: Leverage Ratios
Problem 1CC
icon
Related questions
Question
100%

what is its equity multiplier? accounting question

If a company has a debt ratio of
0.40, what is its equity multiplier?
a. 1.40
b. 1.67
c. 2.00
d. 0.60
Transcribed Image Text:If a company has a debt ratio of 0.40, what is its equity multiplier? a. 1.40 b. 1.67 c. 2.00 d. 0.60
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Recommended textbooks for you
Entrepreneurial Finance
Entrepreneurial Finance
Finance
ISBN:
9781337635653
Author:
Leach
Publisher:
Cengage
Intermediate Financial Management (MindTap Course…
Intermediate Financial Management (MindTap Course…
Finance
ISBN:
9781337395083
Author:
Eugene F. Brigham, Phillip R. Daves
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning