is the financial leverage ratio (Assets/Equity) also know as an “Equity Multiplier”? If so why?
Yes, it is known as ‘equity multiplier’. In Dupont’s equation for ROE, this is the last part. If this goes up, the ROE goes up. Even otherwise, higher financial leverage, increases returns on Equity, as Debt is usually less costly than Equity and also gets tax deductions, unlike dividends.