A Firm with a Debt Ratio of 0

question 64

Multiple Choice

A firm with a debt ratio of 0.75, will have an equity multiplier of

• A)0.25
• B)1.00
• C)0.75
• D)4.00

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Definitions:

Phaneritic Texture

A texture of igneous rocks characterized by large, visible crystals, indicative of slow cooling magma.

Trapped Gas

Trapped gas refers to gas that has been contained within another material, such as within rock formations or ice, which can be released under certain conditions.

Andesite

An intermediate-composition igneous rock that is the fine-grained equivalent of diorite; typically gray or greenish-gray, commonly with phenocrysts of cream-colored feldspar or dark amphibole.

Magma Chamber

A reservoir of molten rock beneath the surface of the Earth or a volcano.