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2 years ago

You find that a firm has a total debt ratio of 0. 63. what is the equity multiplier for this firm?

Business

1 answer:

Tamiku [17]2 years ago

8 0

A company's overall debt to equity ratio is $0.63$ . This company's equity multiplier is $1.63.$

The phrase "debt ratio" refers to a financial ratio that assesses how much leverage a business has. The ratio of total debt to total assets, represented as a decimal or percentage, is known as the debt ratio. The percentage of a company's assets that are financed by debt is one way to understand it. An asset-to-asset ratio greater than $1$ indicates that a significant portion of a firm's assets are financed by debt, which indicates that the corporation has more liabilities than assets. If interest rates abruptly increase, a company with a high ratio may be at risk of loan default. A ratio less than $1$ indicates.

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3 years ago

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3 years ago

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2 years ago

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2 years ago

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3 years ago