Author Question: The financial leverage multiplier is the ratio of a firm's total assets to common stock equity. ... (Read 165 times)

jasdeep_brar · **on:** Jul 11, 2018

The financial leverage multiplier is the ratio of a firm's total assets to common stock equity.

Indicate whether the statement is true or false

Question 2

In calculating the cost of common stock equity, the model which describes the relationship between the required return and the nondiversifiable risk of the firm is ________.

A) the constant-growth model
B) the NPV model
C) the variable growth model
D) the capital asset pricing model