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(DuPont analysis) Garwyk, lhc, which b financed with dett and equiy, prosenty has a ditt ratio of 75
percent. What is the firmis equity muliplisp? How is the equity meltiplier related to the firm's use of
debt financing (ie, if the fim increased its use of debt financing wotld this incease or decrease its
equity multiplet)? Explain. What is the firms equity multiption? The equity multiplier is given by:
Equity Mullolier m 1DebtRatio1 The equity multiplier in (fiound to two decimal places)

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