Respuesta :
Answer:
Option D.
Step-by-step explanation:
The formula for total debt ratio is
[tex]\text{Total debt ratio}=\dfrac{\text{Total assets - Total Equity}}{\text{Total assets}}[/tex]
It can be rewritten as
[tex]\text{Total debt ratio}=1-\dfrac{\text{Total Equity}}{\text{Total assets}}[/tex] .... (1)
We know that,
[tex]\text{ Equity multiplier}=\dfrac{\text{Total Equity}}{\text{Total assets}}[/tex] ... (2)
Using (1) and (2) we get
[tex]\text{Total debt ratio}=1-\dfrac{1}{\text{Equity multiplier}}[/tex]
Substitute total debt ratio=0.46 in the above equation.
[tex]0.46=1-\dfrac{1}{\text{Equity multiplier}}[/tex]
[tex]0.46-1=-\dfrac{1}{\text{Equity multiplier}}[/tex]
[tex]-0.54=-\dfrac{1}{\text{Equity multiplier}}[/tex]
[tex]\text{Equity multiplier}=-\dfrac{1}{-0.54}[/tex]
[tex]\text{Equity multiplier}=1.85185185[/tex]
[tex]\text{Equity multiplier}\approx 1.85[/tex]
Therefore, the correct option is D.
