If a company's total liabilities are $60,000 and its total equity is $120,000, what is the debt-to- equity ratio? A) 0.25 B) 0.5 C) 1.0 D) 2.0

Entrepreneurial Finance
6th Edition
ISBN:9781337635653
Author:Leach
Publisher:Leach
Chapter5: Evaluating Operating And Financial Performance
Section5.4: Leverage Ratios
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If a company's total liabilities are $60,000 and
its total equity is $120,000, what is the debt-to-
equity ratio?
A) 0.25
B) 0.5
C) 1.0
D) 2.0
Transcribed Image Text:If a company's total liabilities are $60,000 and its total equity is $120,000, what is the debt-to- equity ratio? A) 0.25 B) 0.5 C) 1.0 D) 2.0
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