Business Studies, asked by mkaur5924, 1 year ago

A firms equity multiplier is an indication of its which position

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Answered by Anonymous
1
Generally, a lower equity multiplier indicates a company has lower financial leverage. It is better to have a low equity multiplier, because that means a company needs to use less debt to finance its assets. The equity multiplier is calculated by dividing a company's total assets by its shareholders' equity.
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