You have obtained the following information for Blue Bell Farms.The tax rate is 34 percent.

What is the equity multiplier?
A)2.31 times
B)1.93 times
C)2.50 times
D)2.08 times
E)1.59 times

Question

You have obtained the following information for Blue Bell Farms.The tax rate is 34 percent.

What is the equity multiplier?
A)2.31 times 
B)1.93 times 
C)2.50 times 
D)2.08 times 
E)1.59 times

Quizplus · Accepted Answer

Total assets = $124 + $518 + $1,027 + $2,498 = $4,167 Total equity = $4,167 - $486 - $135 - $1,876 = $1,670 Equity multiplier = $4,167 / $1,670 = 2.50 times

You Have Obtained the Following Information for Blue Bell Farms