The equity multiplier is the ratio of total assets to shareholders' equity, which is proportional to the ratio of assets to liabilities. Rights<br>The larger the multiplier, the smaller the proportion of capital invested by shareholders in all assets and the amount of liabilities of the enterprise<br>The higher the degree. When the operation of the enterprise is in good condition, the higher equity multiplier can create more for the company<br>Economic value, when the operating conditions of enterprises are not good, a higher equity multiplier will increase the financial situation of enterprises<br>risk
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