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Galaxy Corporation has a debt-to-equity ratio of 0.75. Its total shareholders' equity is $4 million, and current liabilities total $1.2 million. How much long-term debt is outstanding? A. $1.8 million B. $3.0 million C. $2.4 million D. $1.2 million

Galaxy Corporation has a debt-to-equity ratio of 0.75. Its total shareholders' equity is $4 million, and current liabilities total $1.2 million. How much long-term debt is outstanding? A. $1.8 million B. $3.0 million C. $2.4 million D. $1.2 million

Intermediate Financial Management (MindTap Course List)
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter7: Analysis Of Financial Statements
Section: Chapter Questions
Problem 2P: Vigo Vacations has $200 million in total assets, $5 million in notes payable, and $25 million in...
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Galaxy Corporation has a debt-to-equity ratio of 0.75. Its total shareholders' equity is $4 million, and current liabilities total $1.2 million. How much long-term debt is outstanding? A. $1.8 million B. $3.0 million C. $2.4 million D. $1.2 million
Transcribed Image Text:Galaxy Corporation has a debt-to-equity ratio of 0.75. Its total shareholders' equity is $4 million, and current liabilities total $1.2 million. How much long-term debt is outstanding? A. $1.8 million B. $3.0 million C. $2.4 million D. $1.2 million
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