None Ace Motors, Inc. reported a debt-to-equity ratio of 0.80 times atthe end of 2020. If the firm's total debt at year-end was $4million, how much equity does Ace Motors have?Options:a. $3 millionb. $5 millionc. $3.2 milliond. $6 million

Step 1: Definition of Debt-to-Equity RatioThe Debt-to-Equity Ratio (D/E) is a critical financial…

Answered: Ace Motors, Inc. reported a…

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter14: Long-term Liabilities: Bonds And Notes

Section: Chapter Questions

Problem 1PEA

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True option? General Accounting

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Ace Motors, Inc. reported a debt-to-equity ratio of 0.80 times at the end of 2020. If the firm's total debt at year-end was $4 million, how much equity does Ace Motors have? Options: a. $3 million b. $5 million c. $3.2 million d. $6 million