Answered: If a company's debt-to-equity ratio is…

If a company's debt-to-equity ratio is 0.75 and its total liabilities are $600,000, what is the value of shareholders' equity? A) $450,000 B) $600,000 C) $800,000 D) $1,200,000

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 30BEB: Klynveld Companys balance sheet shows total liabilities of 94,000,000, total stockholders equity of...

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Question

If a company's debt-to-equity ratio is 0.75 and
its total liabilities are $600,000, what is the
value of shareholders' equity?
A) $450,000
B) $600,000
C) $800,000
D) $1,200,000

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