Equity multiplier

Definition:

Total assets divided by total common stockholders' equity; the total assets per dollar of stockholders' equity.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Bankruptcy

Inability to pay debts. In bankruptcy of a publicly owned entity, the ownership of the firm's assets is transferred from the stockholders to the bondholders.

Subscribe to the Term of the Day via email Get the Term of the Day in your inbox!


Create your free portfolio