What is spartan manufacturings equity multiplier

Reference no: EM13302758

Spartan Manufacturing is a highly leveraged firm that has 30,000 bonds outstanding with a face value of $1000 each. These bonds represent 30% of their total outstading debt. Additionally, Spartan Manufacturind has 100,000 shares of common stock currently valued at $6,000,000 that represents 85% of the firm's equity. Given this information, what is Spartan Manufacturing's Equity Multiplier?

Reference no: EM13302758

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