You are given the information of firm A and B for their performance evaluation. Firm A B Sales 15 20 EAT 2 2 Total Assets 25 40 Stockholder's Equity 10 10

Suppose the industry average of net profit margin ratio, total asset turnover and equity multiplier is around 10%, 0.58 times and 2.5 respectively.

What is the debt ratio of firm A? Question 6 options:

0.4

0.8

2.5

0.6