What will be a firm's equity multiplier given a debt ratio of 0.45? Round your final answer to two decimal places.
A) 1.82
B) 1.28
C) 2.22
D) None of the above

Name: What will be a firm's equity multiplier given a debt ratio of 0.45? Round your final answer to two decimal places. A) 1.82 B) 1.28 C) 2.22 D) None of the above
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Quizplus · Accepted Answer

The equity multiplier is calculated as 1 / (1 - debt ratio). Given a debt ratio of 0.45, the equity multiplier is 1 / (1 - 0.45) = 1.82.

What Will Be a Firm's Equity Multiplier Given a Debt