excel-2-template_fall_2018.xl x\"Files. OneDrive N Netlix ces × onnect.mheducati

Question

excel-2-template_fall_2018.xl x"Files. OneDrive N Netlix ces × onnect.mheducation.com/flow/connect.html Calculating the equity multiplier-Exce FLE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW 12 A A PasteBIU- A Alignment Number Conditional Format as Cell Cells Editing Formatting Table Styles Clipboard D11 A B E F Levine, Inc., has a total debt ratio of 53. What is its debt-equity ratio? What is its equity multiplier? Total debt ratio Complete the following analysis. Do not hard code values in your calculations Debt-equity ratio Equity multiplier 10 12 13 14 15 0 o fa

Explanation / Answer

Debt Ratio = 0.53

Equity Ratio = 1 - Debt Ratio
Equity Ratio = 1 - 0.53
Equity Ratio = 0.47

Debt-equity Ratio = Debt Ratio / Equity Ratio
Debt-equity Ratio = 0.53 / 0.47
Debt-equity Ratio = 1.13

Equity Multiplier = 1 / Equity Ratio
Equity Multiplier = 1 / 0.47
Equity Multiplier = 2.13

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