"The financial leverage multiplier is the ratio of" ________. A. current assets to current liabilities B. total assets to total

Question

adell [148]

3 years ago

10

"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

Business

1 answer:

Bond [772] · Answer 1 · 2022-01-19T19:51:39+03:00

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

"The financial leverage multiplier is the ratio of​" ________. A. current assets to current liabilities B. total assets to total

"The financial leverage multiplier is the ratio of" ________. A. current assets to current liabilities B. total assets to total