Debt Equity ratio and which property will be preferred by creditors? The Instagram Inn Information Total Assets $6,980,000 = Total Liabilities $1,500,000 + Total Owners Equity $5,480,000 The Linkedln Inn Information Total Assets $6,980,000 = Total Liabilities $1,660,000 + Total Owners Equity $5,320,000 Both properties have good debt equity ratios. The equity is greater than the debt. The creditors will prefer The LinkedIn Inn, which has a more desirable debt equity ratio of .31 to 1. Both properties have more debt than equity. The creditors generally will not be happy but they will prefer The Instagram Inn, which has a debt equity ratio of 1.27 to 1 . The creditors will prefer the property that has the lower debt to equity ratio, which is The LinkedIn Inn. The debt equity ratio is .31 to 1 . The creditors will prefer The Instagram Inn, which has the lower debt equity ratio of .27 to 1