Karla, a recent college graduate, is earning $43,000 per year with $36,000 in take-home pay. Her monthly apartment rent is $1040. She pays $385 per month on her outstanding student loans, which now total $38,000. In addition, she has credit card debt totaling $8,000, on which she pays the minimum payment of $320 per month. She has assets of $14,000. None of her debts are secured by her assets, i.e., there are no leans against her assets. Given the facts above, how is Karlas debt-to-equity ratio calculated?

A: Student Loans + Credit Card Debt

B: (Student Loans + Credit Card Debt)/ Karlas Assets

C; Debt Equity

D: Debt - Equity

PreviousNext