Answer Riverdale Industries has sales of $625,000, total assets of $510,000, adebt-equity ratio of 0.75, and a profit margin of 4.2 percent. What isthe equity multiplier?a. 1.3b. 1.75c. 2.1d. 0.92

To find the equity multiplier, we use the formula: Equity Multiplier=1+Debt-Equity Ratio It shows…

Answered: Riverdale Industries has sales of…

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter7: Analysis Of Financial Statements

Section: Chapter Questions

Problem 6P

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Riverdale Industries has sales of $625,000, total assets of $510,000, a debt-equity ratio of 0.75, and a profit margin of 4.2 percent. What is the equity multiplier? a. 1.3 b. 1.75 c. 2.1 d. 0.92