There is no ideal value for an equity multiplier ratio because not all business strategies are the same. It can be high or low depending upon the financing strategies of a business; it can also differ from company to company depending on its size. With that said, it is ideal to have the...
The debt ratio is defined as the fraction of total debt to total assets. The ratio varies depending on the industry.Answer and Explanation: a. The debt to equity ratio is 1.13 b. Equity multiplier is 2.13 Total debt ratio = 0.53 Equity to total assets...
百度试题 题目2. A firm has a debt-equity ratio of .55. What is the equity multiplier if total equity is $4,500? A. .45 B. 1.55 C. 1.82 D. 2.22 相关知识点: 试题来源: 解析 B.1.55 反馈 收藏
A firm has a debt-to-equity ratio of 0.5. What is its equity multiplier?a. 1b. 2.5c. 3d. 1.5e. 2Equity Multiplier:The equity multiplier is a financial metric used to determine the extent to which an entity depends on external financing and debt in it...
2) Is Financial Leverage Ratio = Assets/Equity or Avg. Assets/Avg. Equity, or do they have a different meaning?? Thanks” –Hari 1-on-1 CMA Coaching Support Financial Leverage Ratio isthe sameas the Equity Multiplier. But Financial Leverage Ratio isdifferentfrom the Degree of Financial Lever...
What You Need To Know About Debt To Equity Ratio By: • Finance Tape Shredding Definition By: • Finance Moratorium: Definition: How It Works, Examples By: • Finance Multi-Leg Options Order: Definition, Strategies, Examples By: • Finance What Is The Equity Multiplier? Def...
During a loss, the insurance limit and the required amount to be used for insurance based on the coinsurance percentage are compared and must have a ratio equal to or greater than one, else, a penalty will be given. How Property Coinsurance Works Photo from pxfuel.com To better understand ...
A total debt ratio is a measurement of the total debts of a person or organization compared to the total assets. It's used to...
The equity multiplier is also known as the financial leverage ratio. Investopedia / Nez Riaz Debt and Financing Companies finance theacquisitionof assets by issuing equity or debt. In some cases, they use a combination of both. Investors monitor how much shareholders' equity is used to pay for ...
Generally, it is better to have a low equity multiplier, as this means a company is not incurring excessive debt to finance its assets. Debt-to-Capitalization Ratio Thedebt-to-capitalization ratiomeasures the amount of debt in a company’s capital structure. It is calculated as: ...