Final answer:
The equity multiplier is a financial ratio used to measure a company's financial leverage. It is calculated by dividing the total assets of a company by its total equity. The equity multiplier of AR Hogs's is 1.47.
Step-by-step explanation:
The equity multiplier is a financial ratio that measures a company's financial leverage. It is calculated by dividing the total assets of a company by its total equity.
In this case, we can use the debt-equity ratio to find the equity multiplier. The debt-equity ratio is calculated by dividing the company's total liabilities by its total equity.
Let's denote the debt-equity ratio as DE and the equity multiplier as EM. We have the formula:
EM = 1 + DE
Given that AR Hogs's has a debt-equity ratio of 0.47, we can substitute this value into the formula:
EM = 1 + 0.47
Therefore, the equity multiplier of AR Hogs's is 1.47.