Calgary Corp recently reported total assets of $10,000 and total common equity of $4,000 on its balance sheet.If the firm's current stock price is $35 per share,what is the firm's equity multiplier?
A)2.50
B).25
C)114
D)3.33

Question

Quizplus · Accepted Answer

The equity multiplier is calculated by dividing total assets by total common equity. In this case, the equity multiplier is $10,000/$4,000 = 2.50.

Calgary Corp Recently Reported Total Assets of $10,000 and Total