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Total assets divided common equity is a formula uses for calculating

A. equity multiplier

B. graphical multiplier

C. turnover multiplier

D. stock multiplier

Answer: Option A

Solution(By Examveda Team)

Total assets divided common equity is a formula uses for calculating equity multiplier. The equity multiplier is a financial leverage ratio that measures the amount of a firm's assets that are financed by its shareholders by comparing total assets with total shareholder's equity.

This Question Belongs to Commerce >> Financial Management

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