What is the equity multiplier for 2011?
A) 1.6
B) 1.8
C) 2.0
D) 2.3
E) 2.5

Name: What is the equity multiplier for 2011? A) 1.6 B) 1.8 C) 2.0 D) 2.3 E) 2.5
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Question

What is the equity multiplier for 2011?
A) 1.6 
B) 1.8 
C) 2.0 
D) 2.3 
E) 2.5

Quizplus · Accepted Answer

The equity multiplier is calculated as Total Assets/Total Equity. 
For 2011, Total Assets = $800,000 and Total Equity = $500,000. 
Therefore, Equity Multiplier = $800,000/$500,000 = 1.6. 
Hence, the answer is A.

What Is the Equity Multiplier for 2011