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25. A firm has an equity multiplier of 1.5. This means that the firm has a: A. debt-equity ratio of .67. B. debt-equity ratio of

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25. A firm has an equity multiplier of 1.5. This means that the firm has a: A. debt-equity ratio of .67. B. debt-equity ratio of .33. C. total debt ratio of .50. D. total debt ratio of .67. E. total debt ratio of .33. 26. A firm has net income of $4,238 and interest expense of $898. The tax rate is 35 percent. What is the firm's times interest earned ratio? A. 7.33 B. 7.26 C. 5.38 D. 8.26 E. 9.33 1 6

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