Klein Corporation has provided the following data:
$\begin{array}{lrr}& \text { year 2}& \text {Year 1 }\
\text { Total assets ........................ } & \$ 1,337,000 & \$ 1,310,000 \
\text { Total liabilities.................. } & \$ 598,000 & \$ 580,000 \
\text { Total stockholders' equity ...... } & \$ 739,000 & \$ 730,000
\end{array}$ The company's equity multiplier is closest to:
A) 1.24
B) 0.56
C) 1.80
D) 0.81

Question

Quizplus · Accepted Answer

The equity multiplier is calculated as Total Assets divided by Total Stockholders' Equity. For Year 2, it is $1,337,000 / $739,000 = 1.81, which is closest to 1.80.

Klein Corporation Has Provided the Following Data The Company's Equity Multiplier Is Closest To: A) 1

Klein Corporation Has Provided the Following Data The Company's Equity Multiplier Is Closest To:
A) 1