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Computing the firm's equity multiplier at given a debt ratio
Dreisen Traders has total debt of $1,233,837 and total assets of $2,178,990. What are the firm's equity multiplier and debt-to-equity ratio?
a) 2.31; 1.31
b) 1.75; 0.75
c) 0.75; 1.75
d) 1.31; 2.31
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