The FIN 301 corporation has an equity multiplier (aka financial leverage multiplier) of 5. Its debt ratio

Question:

The FIN 301 has an equity multiplier (aka financial leverage multiplier) of 5. Its debt ratio must be ______.
a. .20
b. .60
c. .40
d. .80

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...