nsuleban4136 nsuleban4136

11-09-2017
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Coulter supply has a total debt ratio of .46. what is the equity multiplier? .89 1.17 1.47 1.85 2.17

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ahmedishaal ahmedishaal

19-09-2017

The answer is 1.85
Total debt ratio = 0.46
Equity multiplier = ?
Debt-equity ratio = 0.46/(1 - 0.46)
=0.46 / 0.54
=0.85
Equity multiplier = 1 + 0.85 = 1.85

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