This question has me going absolutely bonkers! It makes no sense! I think I\'m m

Question

This question has me going absolutely bonkers! It makes no sense! I think I'm missing something. The book says that it's a "simple" problem (so maybe I'm a simple person):

"Bartley Barstools has an equity multiplier of 2.4, and its assets are financed with some combination [which the book doesn't provide] of long-term debt and common equity. What is its debt-to-assets ratio?"

Yet, with this being the only information, somehow, the book came up with an answer of 58.33%?   How did the book come up with 58.33%?

Is there some information missing for the problem? The only information I see is the equity multiplier, and it asks for the Debt-Assets Ratio. This is the best I can surmise -- where A = Assets, TCE = Total Common Equity, DR = Debt Ratio, TD = Total Debt, EM = Equity Multiplier,

A/TCE = 2.4
A = 2.4(TCE)
DR = TD / 2.4(TCE)

How can you get a 58.33% out of that? Am I missing something? No constants are provided for any of its factors.

Explanation / Answer

equity multiplier = 2.4

equity ratio = 1/2.4 = 0.42

debt ratio + equity ratio =1

debt ratio = 1- 0.42 = 0.58

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