Queen, inc., has a total debt ratio of. 32.

a. What is its debt-equity ratio? (do not round intermediate calculations. Round your answer to 2 decimal places,

e. G., 32.16.)

b. What is its equity multiplier? (do not round intermediate calculations. Round your answer to 2 decimal places,

e. G., 32.16.)

(A) Debt ratio = 0.32

Debt / (debt + equity) = 0.32

Debt = 0.32 * Debt + 0.32 * Equity

0.68 * Debt = 0.32 * Equity

Debt = 0.32*Equity/0.68 = 0.32/0.68 * Equity

Debt / equity ratio = (0.32/068*Equity) / Equity

Debt/Equity ratio = 0.32/0.68 = 0.47

Debt-equity ratio = 0.47 (Rounded to 2 decimals)

(B) Equity multiplier = 1 + debt - equity = 1+0.47 = 1.47

Equity multiplier = 1.47 (Rounded to 2 decimals)