- Font Paragraph Styles Carla Vista, Inc., has a debt ratio of 0.54. What are the...

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business accounting

Answer 1

Answer #1

Debt ratio i.e. Debt/total capital = 0.54

Total capital = Debt + equity

Hence, equity/total capital = 1-0.54 =0.46

Debt to Equity Ratio = Debt/equity

= 0.54/0.46

= 1.1739

I.e. 1.17

Equity Multiplier = Total Assets/equity

= 1/0.46

= 2.1739

I.e. 2.17

Answer 2

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