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

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
Transcribed Image Text: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
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