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A leverage of 1.81 means that (assume leverage is calculated as Assets/Equity): assets are funded with 81% equity. $1.81 of assets is funded with $1.00

A leverage of 1.81 means that (assume leverage is calculated as Assets/Equity):

assets are funded with 81% equity.

$1.81 of assets is funded with $1.00 of debt and $0.81 of equity.

assets are funded with 81% debt.

$1.81 of assets is funded with $1.00 of equity and $0.81 of debt.

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