If a Firm Finances with Only Debt and Common Equity

question 58

True/False

If a firm finances with only debt and common equity, and if its equity multiplier is 3.0, then its debt ratio must be 0.667.

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Definitions:

Mobile Commerce

The buying and selling of goods and services through wireless handheld devices such as smartphones and tablets.

Share Of Wallet

A marketing metric that represents the amount of a customer's total spending that a company captures in the products and services that it offers.

Online Retailers

Businesses that sell goods or services to consumers through the internet, without a physical storefront.

Private-label Brand

Products manufactured by one company but sold under another company's brand, often positioned as lower-cost alternatives to national brands.