Rita's corporation had a debt ratio of 44.00%

1. The debt-to-equity is _____ times.

2. The equity multiplier is ______ times.

Rita's corporation had a debt ratio of 44.00%

1. The debt-to-equity is 0.79 times.

The basic accounting equation

Assets = Liabilities + Equity

Since Liabilities are 44% of assets (given) equity is 56% of assets

44 / 56 = 0.79

2. The equity multiplier is 1.27 times.

100 / 79 = 1.27

Rita's corporation had a debt ratio of 44.00%

1. The debt-to-equity is _____ times.

2. The equity multiplier is ______ times.