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Olenka [21]
3 years ago
7

Allyba Dance Supply has total assets of $550,000 and total debt of $295,000. What is the equity multiplier?

Business
1 answer:
marishachu [46]3 years ago
3 0

Answer:

Equity multiplier = 2.16

Explanation:

Given:

Total assets = $550,000

Total debt = $295,000

Find:

Equity multiplier

Computation:

Equity multiplier = Total assets / [Total assets - Total debt]

Equity multiplier = $550,000 / ($550,000 – 295,000)

Equity multiplier = 2.16

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