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

Entrepreneurial Finance
6th Edition
ISBN:9781337635653
Author:Leach
Publisher:Leach
Chapter5: Evaluating Operating And Financial Performance
Section5.4: Leverage Ratios
Problem 1CC
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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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