The equity multiplier is equal to:
A)one plus the debt-equity ratio.
B)one plus the total asset turnover.
C)total debt divided by total equity.
D)total equity divided by total assets.
E)one divided by the total asset turnover.

Question

Quizplus · Accepted Answer

The equity multiplier is a financial leverage ratio that is calculated as one plus the debt-equity ratio. It indicates how much of a company's assets are financed by equity.

The Equity Multiplier Is Equal To