Given answer with calculation If Orion Industries has $150,000 in debt and $150,000 in equity, then which of the followingis true?Options:a) The return on equity ratio is 1.b) The debt-to-equity ratio is 1.c) The return on assets ratio is 0.5.d) The firm has too much debt.

Let's analyze each option using the given information:Debt = $150,000Equity = $150,000Total assets =…

Answered: If Orion Industries has $150,000 in…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter14: Capital Structure Management In Practice

Section: Chapter Questions

Problem 23P

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If Orion Industries has $150,000 in debt and $150,000 in equity, then which of the following is true? Options: a) The return on equity ratio is 1. b) The debt-to-equity ratio is 1. c) The return on assets ratio is 0.5. d) The firm has too much debt.