Question: Styles [Chapter 3] 1. The equity multiplier is equal to 1 plus the debt-equity ratio. Using an example, prove that this equation is true. 2.

Styles [Chapter 3] 1. The equity multiplier is equal to 1 plus the debt-equity ratio. Using an example, prove that this equation is true. 2. What can you learn about a firm by using the Du Pont identity that you cannot determine by just knowing the return on equity

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