8. We can use the Du Pont identity and solve for the equity multiplier. With the equity multiplier we can find the debt-equity ratio. Doing so we find:
ROE = (Profit margin)(Total asset turnover)(Equity multiplier)
0.1430 = (0.08)(1.16)(Equity multiplier)
Equity multiplier = 1.54
Now, using the equation for the equity multiplier, we get:
Equity multiplier = 1 + Debt-equity ratio
1.54 = 1 + Debt-equity ratio
Debt-equity ratio = 0.54