5. A firm with an equity multiplier of 4.0, will have a debt ratio of a....

Question

Question

business finance

Answer 1

Answer #1

The correct answer is C . 0.75

Explanation:-

Debt ratio = 1 - ( 1 $\div$ Equity multiplier)

Debt ratio = 1 - ( 1 $\div$ 4 )

Debt ratio = 0.75

Answer 2

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