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A company has the following information. What is the financial leverage ratio? Total assets $736,000 Total liabilities 314,000 Interest expense 9,400

Respuesta :

abiolataiwo2015

Answer:

1.7441

Explanation:

Calculation to determine financial leverage ratio

Using this formula

Financial leverage ratio=Total assets/(Total assets-Total liabilities)

Let plug in the formula

Financial leverage ratio=736,000/(736,000 - 314,000)

Financial leverage ratio= 1.7441

Therefore the financial leverage ratio is 1.7441

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