Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please show work, thanks . 5. Your firm has Sales of $400, Current Liabilities of $50, Long Term-Debt of $300, ar Total Assets of $850.

image text in transcribedplease show work, thanks
. 5. Your firm has Sales of $400, Current Liabilities of $50, Long Term-Debt of $300, ar Total Assets of $850. Which of the following is true? A. B. C. D. E. F. For every dollar of debt there is $0.70 of equity. For every dollar of assets there is $0.70 of debt. The debt-equity ratio is about 41%. The debt ratio is 70%. The debt-equity ratio is 70%. None of the above. Your firm has Net Income of $2000, ROE of 12%, and Total Assets of $20,000. Which of the following is true? A. B. For every dollar of assets there is $0.20 of debt. For every dollar of equity there is $0.20 of debt. The debt-equity ratio is 16.7%. The debt ratio is 33.3%. The debt ratio is 20%. None of the above. F

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Chains Of Finance How Investment Management Is Shaped

Authors: Diane-Laure Arjalies, Philip Grant, Iain Hardie, Donald MacKenzie, Ekaterina Svetlova

1st Edition

0198802943, 978-0198802945

More Books

Students also viewed these Finance questions

Question

Differentiate 3sin(9x+2x)

Answered: 1 week ago

Question

Compute the derivative f(x)=(x-a)(x-b)

Answered: 1 week ago