Bob has a leverage of 1.50 This means that: (Assume leverage is calculated as Assets/Equity) Select: Assets are funded with 50% debt. Assets are…

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Bob has a leverage of 1.50 This means that: (Assume leverage is calculated as Assets/Equity) Select: 1:Assets are funded with 50% debt. Assets are funded with 50% equity. $1.50 of assets is funded with $1.00 of debt and $0.50 of equity. $1.50 of assets is funded with $1.00 of equity and $0.50 of debt.

Please explain why. Thanks

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