Question

US Steel Corporation's 10k from March of this year shows total assets of $9 billion and...

US Steel Corporation's 10k from March of this year shows total assets of $9 billion and 60% of its assets are financed with debt. What is US Steel's equity multiplier?

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Answer #1

2.50

Equity Multiplier = Total assets / Total Equity
=           9.00 /           3.60
=           2.50
Working:
Equity = Total assets * (1- Debt Ratio)
= 9*(1-0.60)
=           3.60

Note:

Dollar amounts are in billion.

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