An Equity Multiplier of 1

question 74

Multiple Choice

An equity multiplier of 1.64 means that for every $1 the firm raises in new equity, the firm can:

• A) Acquire an additional $1.64 in new assets.
• B) Acquire an additional $1.64 in new debt.
• C) Earn $1.64 in additional profits.
• D) Earn $1.64 in additional profits per share.
• E) Pay $1.64 in additional dividends per share.

---

Definitions:

Nystagmus

Involuntary, rapid, and repetitive movement of the eyeballs, which can be horizontal, vertical, or rotary.

Astigmatism

A common vision condition caused by an irregular curvature of the cornea or lens, leading to blurred vision.

Myopia

A common vision condition characterized by difficulty in seeing distant objects clearly, often referred to as nearsightedness.

Dacryoma

A tumor of the lacrimal sac or gland, often related to the tear production system.