1. The following data (in millions) is given for Magenta Inc. for the current year.

Total assets	$720,000
Total liabilities	$411,000
Total stockholders' equity	$309,000

Compute the debt ratio. (Round to the nearest whole number.)

a.44%

b.75%

c.10%

d.57%

2. What is the effect of declaring a stock dividend on the liabilities and stockholders' equity section of the balance sheet?

a.A decrease in total liabilities and an increase in total stockholders' equity

b.No effect on total liabilities and a decrease in total stockholders' equity

c.No effect on total liabilities and total stockholders' equity

d.An increase in total liabilities and a decrease in total stockholders' equity