hw question about what leverage means?

Chester has a leverage of 1.82 This means that:

(Assume leverage is calculated as Assets/Equity)

a)Assets are funded with 82% equity.

b)$1.82 of assets is funded with $1.00 of equity and $0.82 of debt.

c)$1.82 of assets is funded with $1.00 of debt and $0.82 of equity.

d)Assets are funded with 82% debt.

1 Answer

  • Mitch
    1 month ago

    The correct answer is B

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