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Equity multiplier = 24

Equity ratio = 1/3.0 = 0.33

Debt ratio + Equity ratio = 1

***THIS EQUATION IS THE KEY TO THE ANSWER***

By manipulating this formula you can find

Debt ratio = 1 - Equity ration

1 - 0.33 = 0.67 or 67%

Debt ratio = 67%

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13y ago

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