Fincher, inc., has a total debt ratio of. 82. What is its debt-equity ratio? (do not round intermediate calculations and round your answer to 2 decimal places,

e. G., 32.16.) debt-equity ratio times what is its equity multiplier? (do not round intermediate calculations and round your answer to 2 decimal places,

e. G., 32.16.) equity multiplier times

(a) Debt ratio = 0.82

Debt / Assets = 0.82

Debt / (Debt + Equity) = 0.82

Debt = 0.82Debt + 0.82 Equity

0.18Debt = 0.82 Equity

Equity = 0.18Debt/0.82

Debt/Equity = Debt / (0.18Debt/0.82) = 4.5556

Debt/Equity = 0.82/0.18 = 4.5556

Debt-Equity ratio = 4.56 times

(b) Equity Multiple = 1 + Debt-equity ratio

Equity multiplier = 1+4.56 = 5.56

Equity multiplier = 5.56 times