17E MANAGERIAL ACCOUNTING CUSTOM
17E MANAGERIAL ACCOUNTING CUSTOM
17th Edition
ISBN: 9781266776328
Author: Garrison
Publisher: MCG
Question
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Chapter 16, Problem 15F15
To determine

Concept Introduction:

Equity Multiplier

Equity multiplier is an indicator of the financial leverage i.e. the degree to which debt is used to fund the assets of the company. It is computed by dividing the total assets of the company to the closing balance of the stockholders equity. The closing balance is considered for computation.

  Equity Multiplier =Total Assets of the company for the reporting periodClosing Balance of Shareholders Equity for the reporting period

To Compute:

Equity Multiplier

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