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31 July, 15:54

Coulter supply has a total debt ratio of. 46. what is the equity multiplier?.89 1.17 1.47 1.85 2.17

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  1. 31 July, 19:16
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    The answer is 1.85

    Total debt ratio = 0.46

    Equity multiplier = ?

    Debt-equity ratio = 0.46 / (1 - 0.46)

    =0.46 / 0.54

    =0.85

    Equity multiplier = 1 + 0.85 = 1.85
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