Digby has a leverage of 1.81 This means that

Digby has a leverage of 1.81 This means that: (Assume leverage is calculated as Assets/Equity)

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

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

•  Assets are funded with 81% debt.
•  Assets are funded with 81% equity.