From Kaplan:
Why would the denominator be a higher amount of equity with a Full Goodwill debt-to-equity ratio vs Partial Goodwill?
Why would the denominator be a higher amount of equity with a Full Goodwill debt-to-equity ratio vs Partial Goodwill?
Full goodwill is a larger number than partial goodwill if you own less than 100% of the subsidiary. Thus, assets under full goodwill are larger than assets under partial goodwill. As liabilities are the same, equity is larger under full goodwill than under partial goodwill.