Homework Answers
Total Debt/Total Assets=0.34
D/(D+E)=0.34
=>1/(1+E/D)=0.34
=>1/0.34-1=E/D
=>D/E=1/(1/0.34-1)
=>D/E=0.515151515
=>Debt/Equity=0.515151515
Equity multiplier=1+D/E=1+0.515151515=1.515151515
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