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The equity multiplier is a financial ratio that allows investors to understand the extent to which a company's return on equity (ROE) is influenced by debt. It measures the proportion of a company's assets that are funded by debt relative to equity. The formula for the equity multiplier is: Equity Multiplier = Total Assets / Total Equity By calculating the equity multiplier, investors can determine how much of the return on equity is attributable to debt financing. A higher equity multiplier indicates a larger portion of the company's ROE is a result of debt, while a lower equity multiplier suggests that equity financing plays a more significant role in generating the company's return.
The Reserve Bank has released a booklet that aims to enhance public awareness about various types of financial frauds perpetrated on gullible customers...
Which of the following Statements is/are True?
I- PCA is a framework under which banks with weak financial metrics are put under watch by the RBI...
……………………………………………. allows the RBI to absorb liquidity (deposit) from commercial banks without giving government secur...
The Reserve Bank of India, recently has proposed to hike UPI (Unified Payment Interface) transaction limit for investing in IPO to…
Which of the following banks continue to be identified by Reserve Bank of India as Domestic-Systemically important Banks
A rate at which RBI (Reserve Bank of India) lends to commercial banks by purchasing securities:
Which among the following is a numerical measurement that is used to predict the chances of a business going bankrupt in the next two years.
The Basel III norms have prescribed a Leverage ratio of a) ___% while the Reserve Bank of India has prescribed a leverage ratio of b)___% for D-SIBs and...
The current expected risk-free rate is 4%, the equity premium is 3.9% and the beta is 0.8. calculate the return on equity.
The Reserve Bank has released a booklet that aims to enhance public awareness about various types of financial frauds perpetrated on gullible customers...