A company has the following information. What is the financial leverage ratio? Total assets $736,000 Total liabilities 314,000 I

Question

3 years ago

9

nterest expense 9,400

1 answer:

faltersainse [42] · Answer 1 · 2022-09-25T07:41:32+03:00

Answer:

1.7441

Explanation:

Calculation to determine financial leverage ratio

Using this formula

Financial leverage ratio=Total assets/(Total assets-Total liabilities)

Let plug in the formula

Financial leverage ratio=736,000/(736,000 - 314,000)

Financial leverage ratio= 1.7441

Therefore the financial leverage ratio is 1.7441