QUESTION 12 A company has an equity multiplier of 2.1 times. What debt ratio (debt to...

Question

Question

business finance

Answer 1

Answer #1

Ans. Option 2nd 52.4%

*Calculation:

Debt ratio = 1 - (1 / Equity multiplier)

= 1 - (1 / 2.1)

= 1 - 0.476

= 0.524 or 52.4%

Answer 2

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