alculating the Debt-to-Equity Ratio. Thomas owns a $160,000 townhouse and still has an unpaid mortgage of $120,000. In addition to his mortgage, he has the following liabilities:

Visa	$600
MasterCard	950
Discover card	250
Education loan	1000
Personal bank loan	700
Auto loan	3,750
Total	$____

Thomass net worth (not including his home) is $30,000. This equity is in mutual funds, an automobile, a coincollection, furniture, and other personal property. What is Roberts debt-to-equity ratio? Has he reached the upperlimit of debt obligations? Explain.

Net worth = Assets - Liabilities