What Is the Equity Multiplier?
Автор: Simple Explain
Загружено: 2024-01-11
Просмотров: 624
Описание:
The equity multiplier measures the portion of a company’s assets financed by shareholders' equity rather than debt. It is used as a risk indicator and calculated by dividing a company's total asset value by the total equity held in the company's stock. A high equity multiplier means the company has a higher level of debt, while a lower equity multiplier may indicate it is using more shareholders' equity.
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