Coulter Supply Has a Total Debt Ratio of 0

question 74

Multiple Choice

Coulter Supply has a total debt ratio of 0.47. What is the equity multiplier?

• A)0.89
• B)1.13
• C)1.47
• D)1.89
• E)2.13

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Definitions:

Outstanding Shares

Shares of a company that are owned by investors, including restricted shares held by the company’s insiders.

Value Per Share

A measure reflecting the equity value of a company divided by its total number of outstanding shares, indicating what each share is worth.

Equity-Financed

This term refers to the portion of a company's operations or assets that is funded by issuing equity (stocks) instead of taking on debt.

Acquisition

The act of obtaining control of another company or asset through purchase or exchange.