The financial leverage multiplier is the ratio of a firm's total assets to common stock equity.

Name: The financial leverage multiplier is the ratio of a firm's total assets to common stock equity.
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The financial leverage multiplier is calculated by dividing total assets by common stock equity, which results in a ratio that indicates how much of a company's assets are financed by equity versus debt. Therefore, the statement is true.

The Financial Leverage Multiplier Is the Ratio of a Firm's