Mountain View Corp has sales of $456,000, total assets of $385,000, a debt- equity ratio of 0.9, and a profit margin of 3.2 percent. What is the equity multiplier? a. 1.9 b. 2.1 c. 1.5 d. 0.85
Mountain View Corp has sales of $456,000, total assets of $385,000, a debt- equity ratio of 0.9, and a profit margin of 3.2 percent. What is the equity multiplier? a. 1.9 b. 2.1 c. 1.5 d. 0.85
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Mountain View Corp has sales of $456,000, total assets of $385,000, a debt-
equity ratio of 0.9, and a profit margin of 3.2 percent. What is the equity
multiplier?
a. 1.9
b. 2.1
c. 1.5
d. 0.85
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