A company has total liabilities of $590,000 and total equity of $472,000. What is the debt-to-equity ratio? 1. 1.12 2. 0.87 3. 1.25 4. 1.40

Entrepreneurial Finance
6th Edition
ISBN:9781337635653
Author:Leach
Publisher:Leach
Chapter5: Evaluating Operating And Financial Performance
Section5.4: Leverage Ratios
Problem 1CC
icon
Related questions
Question

Please provide the correct answer to this financial accounting problem using accurate calculations.

A company has total liabilities of
$590,000 and total equity of $472,000.
What is the debt-to-equity ratio?
1. 1.12
2. 0.87
3. 1.25
4. 1.40
Transcribed Image Text:A company has total liabilities of $590,000 and total equity of $472,000. What is the debt-to-equity ratio? 1. 1.12 2. 0.87 3. 1.25 4. 1.40
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Recommended textbooks for you
Entrepreneurial Finance
Entrepreneurial Finance
Finance
ISBN:
9781337635653
Author:
Leach
Publisher:
Cengage
Corporate Fin Focused Approach
Corporate Fin Focused Approach
Finance
ISBN:
9781285660516
Author:
EHRHARDT
Publisher:
Cengage
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning