You add to the debt-to-equity ratio to get equity multiplier

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Reference no: EM131840081

All three measures of leverage (debt-to-assets, debt-to-equity, and the equity multiplier) are mathematically related. If you know the debt-to-equity ratio of a firm and you want to know the equity multiplier, what number do you add to the debt-to-equity ratio to get the equity multiplier?

Reference no: EM131840081

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