In 2014, CocaColas equity multiplier was 3.04, calculated as total assets divided by stock-holder equity. The equity
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In 2014, Coca‐Cola’s equity multiplier was 3.04, calculated as total assets divided by stock-holder equity. The equity multiplier indicates the level of financial leverage a firm employs. In effect, Coke uses $1 of equity to finance $3.04 of assets.
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The equity multiplier is a financial ratio that measures the proportion of a companys assets that ar...View the full answer
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Investments Analysis And Management
ISBN: 9781118975589
13th Edition
Authors: Charles P. Jones, Gerald R. Jensen
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