Dreisen Traders Has Total Debt of $1,233,837 and Total Assets

question 37

Multiple Choice

Dreisen Traders has total debt of $1,233,837 and total assets of $2,178,990. What are the firm's equity multiplier and debt-to-equity ratio? Round your final answers to two decimal places.

• A) 2.31; 1.31
• B) 1.75; 0.75
• C) 0.75; 1.75
• D) 1.31; 2.31

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Definitions:

AVC

Average Variable Cost, which refers to the total variable cost per unit of output in a business, where variable costs change with the level of production.

MC

Marginal Cost, the cost of producing one additional unit of a product or service.

ATC

Average Total Cost; the total cost of production divided by the number of units produced, representing the per-unit production cost.

Average Fixed Costs

Costs that do not vary with the level of output and are averaged over the total number of units produced.