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(DuPont analysis) Garwryk, lnc, which is fnanced with dobt and equity, presently has a debt ratio of 77 percent. What is the firm's equity multipler?

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(DuPont analysis) Garwryk, lnc, which is fnanced with dobt and equity, presently has a debt ratio of 77 percent. What is the firm's equity multipler? How is the equity multiplier reiated 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 multipler? The equity multiplier is given by: EquityMutiplier=1DebtRatio1 The equity mutsiplier is (Round to two decimal places.) How is the equity multipler roiated to the firm's use of debt financhg (i.e, if the firm increased is use of debt finanoing would this increase or decrease its equity multeples)? Explain. (Select the bast choice below:) A. If the company decreases its dobt financing it will increase its dobt ratio, thetefore it will increase its equity mullipier. B. If the company increases its dobt financhg it will docrease its dobt rato, therefore if will decraase its oquity multiplier. C. If the company inoreases its dobt financing it will increate its dobt ratio, therefore it wil decrease its oquity muliplior. D. If the company increases its dobt financing it will increase its dobt ratio, therefore if will horease zis equily multiplier

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