Digby has a leverage of 1.85 This means that: (Assume leverage is calculated as Assets/Equity) Select: 1 Assets are funded with 85% debt. $1.85 of assets is funded with $1.00 of equity and $0.85 of debt. Assets are funded with 85% equity. $1.85 of assets is funded with $1.00 of debt and $0.85 of equity