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:

Independent Agencies

Governmental organizations that operate independently of the executive branch and are tasked with administering laws and regulations in specific areas.

Board of Commissioners

A governing body elected or appointed to oversee the administration and governance of certain jurisdictions or organizations.

Political Party

An organized group of people with similar political aims and opinions, seeking to influence public policy by getting its candidates elected to public office.

Enabling Statutes

Laws that provide the legal framework and authority for government agencies or bodies to implement regulations and actions.