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The leverage multiplier equals to total asset dividing by shareholders' equity. The high leverage multiplier indicates that the firms decide to overcome the high levels of borrowing or debt on which it must pay interest. The higher ratio means higher liability than its shareholders' equity. Essentially, the ratio is mainly used to help firms making decision about how to raise funds by undertaking debts. A company will only undertake significant amounts of debt when it believes that return on assets (ROA) will be higher than the interest on the loan.
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Is pulley a speed multiplier or a force multiplier?
force
Which part of the multiplication sentence tells how many times a number is multiplied?
The multiplier. The multiplicand is multiplied by the multiplier to create the product.
What are the math terms for multiplication and is the multiplier is correct answer?
Multiplier x multiplicand = product
How do you find a multiplier?
For a change of p percent, the multiplier is (1+p/100).
What is the second number in multiplication problem?
multiplicand x multiplier = product. Multiplier is the answer.
