document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=394816>Question 394816</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Vigo Vacations has an equity multiplier of 2.5.  The company’s assets are financed with some combination of long-term debt and common equity.  What is the company’s debt ratio? </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #280195 by </B><A HREF=/tutors/aboutme.mpl?userid=robertb><B>robertb(5830)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=robertb><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=robertb><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=280195\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> Equity multiplier = Total assets/common stockholder equity = <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=%28TA%29%2F%28TA+-+DC%29 ALIGN=MIDDLE  ALT=\"%28TA%29%2F%28TA+-+DC%29\"   DISABLED_style= \"max-width:90%; height:auto;\" >, where DC = debt capital.\r<BR>\n" );
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document.write( "Then <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=%28TA%29%2F%28TA+-+DC%29+=+2.5 ALIGN=MIDDLE  ALT=\"%28TA%29%2F%28TA+-+DC%29+=+2.5\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "==> TA = 2.5(TA) - 2.5(DC)<BR>\n" );
document.write( "==> 2.5(DC) = 1.5(TA)<BR>\n" );
document.write( "==> <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=DC%2FTA+=+1.5%2F2.5+=+3%2F5 ALIGN=MIDDLE  ALT=\"DC%2FTA+=+1.5%2F2.5+=+3%2F5\"   DISABLED_style= \"max-width:90%; height:auto;\" > = debt ratio. </SPAN>\n" );
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