If a fiRm Has a Total Debt Ratio of 0

question 199

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:

Task Behavior

The extent to which leaders are likely to organize and define the roles of their followers, aiming to establish clear paths to goal achievement.

Group Cohesiveness

The extent to which members of a group support and validate one another and remain loyal to the group.

Opportunistic Leadership

A leadership approach that involves taking advantage of situations as they arise, often adapting strategies and decisions based on current opportunities.

Justified

Refers to something being supported or shown to be right or reasonable based on evidence or reasoning.