What is the? firm equity? multiplier

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The equity multiplier is given? by:Equity Multiplier=1 /1-Debt Ratio

Problem 1: ?Garwryk, Inc., which is financed with debt and? equity, presently has a debt ratio of 77 percent. What is the? firm's equity? multiplier? How is the equity multiplier related to the? firm's use of debt financing? (i.e., if the firm increased its use of debt financing would this increase or decrease its equity? multiplier)? Explain.

Reference no: EM132939180

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