Allyba Dance Supply has total assets of $550,000 and total debt of $295,000.What is the equity multiplier?
A).46
B)1.0
C)1.075
D)1.86
E)2.16

Name: Allyba Dance Supply has total assets of $550,000 and total debt of $295,000.What is the equity multiplier? A).46 B)1.0 C)1.075 D)1.86 E)2.16
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Question

Quizplus · Accepted Answer

The equity multiplier is calculated as Total Assets / Total Equity. Total Equity is Total Assets - Total Debt, which is $550,000 - $295,000 = $255,000. Therefore, the equity multiplier is $550,000 / $255,000 = 2.16.

Allyba Dance Supply Has Total Assets of $550,000 and Total