$($Using DuPont analysis$)$ Garwryk, Inc., which is financed with debt and equity, presently has a debt ratio of $81$ 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.

What is the firm's equity multiplier?

The equity multiplier is given by:

Equity Multiplier $=\frac{1}{1-\text{D}\text{e}\text{b}\text{t}\text{R}\text{a}\text{t}\text{i}\text{o}}$

The equity multiplier is $.($Round to two decimal places.$)$