Question

Fresh Foods has sales of $213,600, total assets of $198,700, a debt-equity ratio of 1.43, and a profit margin of 4.8 percent. What is the equity multiplier?

Answer 1

Answer:

equity multiplier = 2.43

Explanation:

given data

sales = $213,600

total assets = $198,700

debt-equity ratio = 1.43

profit margin =  4.8 percent

solution

we get here equity multiplier that is express as

equity multiplier = 1 + debit equity ratio .....................1

put here value and we will get

equity multiplier = 1 + 1.43

equity multiplier = 2.43