What is the Debt-to-Equity ratio if acompany has total liabilities of $500,000 andtotal shareholders' equity of $250,000?a) 1:1 b) 2:1 c) 1:2 d) 0.5:1

Step 1: The debt-to-equity ratio is the ratio of total liabilities to total shareholder's equity. It…

Answered: What is the Debt-to-Equity ratio if a…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 24MCQ: When analyzing a companys debt to equity ratio, lithe ratio has a value that is greater than one,...

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What is the Debt-to-Equity ratio if a company has total liabilities of $500,000 and total shareholders' equity of $250,000? a) 1:1 b) 2:1 c) 1:2 d) 0.5:1