The formula to calculate the Equity Multiplier (EM) is:
\[ \text{EM} = \frac{\text{TA}}{\text{TSE}} \]
Where:
The Equity Multiplier is a financial leverage ratio that measures the amount of a firm's assets that are financed by its shareholders by comparing total assets with total shareholders' equity.
Let's assume the following values:
Using the formula:
\[ \text{EM} = \frac{100000}{120} \]
Evaluating:
\[ \text{EM} = 833.33 \]
The Equity Multiplier is 833.33.
| Total Assets | Total Shareholders' Equity | Equity Multiplier |
|---|---|---|
| 90000 | 100 | 900.00 |
| 90000 | 110 | 818.18 |
| 90000 | 120 | 750.00 |
| 90000 | 130 | 692.31 |
| 90000 | 140 | 642.86 |
| 95000 | 100 | 950.00 |
| 95000 | 110 | 863.64 |
| 95000 | 120 | 791.67 |
| 95000 | 130 | 730.77 |
| 95000 | 140 | 678.57 |
| 100000 | 100 | 1,000.00 |
| 100000 | 110 | 909.09 |
| 100000 | 120 | 833.33 |
| 100000 | 130 | 769.23 |
| 100000 | 140 | 714.29 |
| 105000 | 100 | 1,050.00 |
| 105000 | 110 | 954.55 |
| 105000 | 120 | 875.00 |
| 105000 | 130 | 807.69 |
| 105000 | 140 | 750.00 |
| 110000 | 100 | 1,100.00 |
| 110000 | 110 | 1,000.00 |
| 110000 | 120 | 916.67 |
| 110000 | 130 | 846.15 |
| 110000 | 140 | 785.71 |