Consider the following worksheet with information extracted from a financial statement. 2020 reported Assets 500 000 and Liabilities 100 000. You believe the firm has omitted a provision pertaining to a lawsuit. You assess this provision is valued at $30 000 and that it will be paid in the next six months. Using the worksheet approach and assuming a corporate tax rate of 30 per cent, what would be the adjusted debt to assets ratio?

a.

15.8%

b.

24.2%

c.

27.8%

d.

12.2%