If a Firm Has a Total Debt Ratio of 0

question 182

Multiple Choice

If a firm has a total debt ratio of 0.5, what is its equity multiplier?

• A) 2.00 times
• B) 0.50 times
• C) 0.67 times
• D) 1.50 times
• E) 3.00 times

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Definitions:

Integer Variable

An integer variable is a type of variable used in programming to store whole numbers.

Valid

Often refers to data or inputs that conform to specified format, rules, or ranges defined within a program or system.

Declarations

Statements in programming that specify the type and sometimes the initial value of variables, functions, and other entities.

Function Declaration

The part of a program that specifies the name, return type, and parameters of a function without defining what it does.