Klein Corporation has provided the following data: The company's equity multiplier is closest to:

Name: Klein Corporation has provided the following data: The company's equity multiplier is closest to:
Brand: Quizplus
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Question

Klein Corporation has provided the following data:  The company's equity multiplier is closest to:

Quizplus · Accepted Answer

Equity multiplier = Average total assets* ÷ Average stockholders' equity*
= $1,323,500 ÷ $734,500 = 1.80 (rounded)
*Average total assets = ($1,337,000 + $1,310,000)÷ 2 = $1,323,500
**Average stockholders' equity = ($739,000 + $730,000)÷ 2 = $734,500

Klein Corporation Has Provided the Following Data: the Company's