Tiggie's Dog Toys, Inc. reported a debt-to-equity ratio of 1.67 times at the end of 2018. If the firm's total debt at year-end was $33 million, how much equity does Tiggie's have on its balance sheet?

Tiggie's equity on its balance sheet is $19,760, 479.042

Explanation:

Debt equity ratio refers to how much debt a company is using to finance its assets in relation to its shareholders' equity. It compares a company's total debt to its total equity.

It is calculated as:

Debt Equity ratio = Total liabilities/shareholders equity

Applying the formula to the question

Debt equity ratio = 1.67

Total liabilities = $33,000,000

Total equity = x

1.67 = $33,000,000 / x

cross multiply

1.67x = $33,000,000

divide both sides by 1.67

x = $33,000,000/1.67

x = $19,760, 479.042

The total equity is $19,760, 479.042