Q290
Total assets divided common equity is a formula uses for calculating
A.
equity multiplier
AnswerB.
graphical multiplier
C.
turnover multiplier
D.
stock multiplier
Answer: Option A
Solution
Answer: Option A
Solution:
Total assets divided common equity is a formula uses for calculating equity multiplier. The equity multiplier is a financial leverage ratio that measures the amount of a firm's assets that are financed by its shareholders by comparing total assets with total shareholder's equity.