Question
With the information given below, what is the Equity
Multiplier of a firm? Total Assets of the firm = 200,000 Total Debt =50,000 Total Equity =40,000Solution
The equity multiplier is calculated by dividing a company's total asset value by total net equity, and it measures financial leverage. Companies finance their operations with equity or debt, so a high equity multiplier indicates that a larger portion of asset financing is attributed to debt. Equity multiplier = Total Assets/Total equity = 200,000/40,000= 5
420, 380, 340, 300, 280, 220, 180
- Find the wrong number in the given number series.
85, 117, 170, 244, 339, 465 Find the wrong number in the given number series.
204, 215, 277, 337, 416, 518- Find the wrong number in the series.
2, 3, 7, 15, 31, 63, 127 Find the wrong number in the given number series.
80, 84, 75, 88, 66, 102
120, 126, 135, 145, 170, 200
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16, 25, 37, 52, 72, 97 Find the wrong number in the given number series.
3, 6, 24, 120, 720, 5040
Find the wrong number in the given number series.
120, 126, 138, 162, 220, 306
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