Red Company's balance sheet reports the following totals: Assets = ($ 80,000); Liabilities (=$ 50,000); Stockholders' Equity
Question:
Red Company's balance sheet reports the following totals: Assets = \(\$ 80,000\); Liabilities \(=\$ 50,000\); Stockholders' Equity \(=\$ 30,000\). Determine the company's debt-tototal-assets ratio.
a. \(37.5 \%\)
b. \(62.5 \%\)
c. \(\$ 15,000\)
d. \(166.7 \%\)
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