5.To find the debt-equity ratio using the total debt ratio, we need to rearrange the total debt ratio equation. We must realize that the total assets are equal to total debt plus total equity. Doing so, we find:
Total debt ratio = Total debt / Total assets
0.65 = Total debt / (Total debt + Total equity)
0.35(Total debt) = 0.65(Total equity)
Total debt / Total equity = 0.65 / 0.35
Debt-equity ratio = 1.86