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.