A Firm Has $100 Million in Current Liabilities, $200 Million

question 4

Multiple Choice

A firm has $100 million in current liabilities, $200 million in long-term debt, $300 million in stockholders' equity, and total book assets of $600 million. There are 100 million shares outstanding with a share price of $16. Calculate the debt ratio for the firm.

• A)11.1 percent
• B)66.7 percent
• C)50 percent
• D)33 percent