> Debt ratio is 0.20, the Equity Multiplier is?

Debt ratio is 0.20, the Equity Multiplier is?

Posted at: 2014-12-05 
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Debt Ratio + Equity Ratio = 1

Equity ratio = 1-0.20 = 0.80

Equity multiplier = 1 / Equity ratio = 1/0.80 = 1.25