A leverage of 1.81 means that:
(Assume leverage is calculated as Assets/Equity)
1. Assets are funded with 81% debt.
2. Assets are funded with 81% equity.
3. $1.81 of assets is funded with $1.00 of debt and $0.81 of equity.
4. $1.81 of assets is funded with $1.00 of equity and $0.81 of debt.
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