Garwryk, Inc., which is financed with debt and equity, presently has a debt ratio of 77 percent. What is the firm's equity multiplier? How is the equity multiplier related to the firm's use of debt financing (i.e., if the firm increased its use of debt financing would this increase or decrease its equity multiplier)? Explain. Question content area bottom Part 1 What is the firm's equity multiplier? The equity multiplier is given by: Equity Multiplier= 1 1Debt Ratio

The equity multiplier is enter your response here. (Round to two decimal places.)