The gift shoppe has total assets of $487,920 and an equity multiplier of 1.47. what is the debt-equity ratio?.68

Equity multiplier = Total assets/Total equity

Total assets = 487,920

Equity multiplier = 1.47

1.47 = 487,920/Total equity

Total equity = 487,920/1.47 = 331,918.37

Total debt = Total assets - Total equity = 487,920 - 331,918.37 = 156,001.63

Debt-equity ratio = total debt/total equity

Debt-equity ratio = 156001.63/331918.37 = 0.47

Alternatively,

Equity multiplier = 1 + Debt-equity

1.47 = 1+debt-equity

Debt-equity = 1.47-1 = 0.47