Equity Multiplier and Debt Ratio
Not what you're looking for?
A firm has an equity multiplier of 2.4, and its assets are financed with some combinations of long-term debt and common equity. What would be the debt ratio?
Purchase this Solution
Solution Summary
This solution provides calculations for finding debt ratio.
Solution Preview
Equity Multiplier= Total Assets/Shareholder equity
Total Assets are 2.4 times of Equity
Hence Debt +Equity= Assets
Debt +Equity=2.4 Shareholder equity
Debt =1.4 Equity
Debt Ratio= Total Debt /Total ...
Purchase this Solution
Free BrainMass Quizzes
Managing the Older Worker
This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce
Organizational Behavior (OB)
The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.
Marketing Research and Forecasting
The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.
Writing Business Plans
This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.
Balance Sheet
The Fundamental Classified Balance Sheet. What to know to make it easy.