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XYZ Company reported the following information: Total Assets $500,000, Total Liabilities $200,000, and Equity $300,000. Calculate the debt-to-equity ratio and the equity multiplier.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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XYZ Company reported the following information: Total Assets $500,000, Total Liabilities $200,000, and Equity $300,000. Calculate the debt-to-equity ratio and the equity multiplier.

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