Question

"The financial leverage multiplier is the ratio of​" ________. A. current assets to current liabilities B. total assets to total debt C. current assets to common​ stockholders' equity D. total assets to common​ stockholders' equity

Answer 1

Answer:

D. total assets to common​ stockholders' equity

Explanation:

The financial leverage multiplier (FLM) is defined as the ratio of the firm’s total assets to the shareholders’ equity.

Analyzing the answer choices provided, the one that better fits the description above is alternative D. total assets to common​ stockholders' equity