Calculate the Value of Long-Term Debt Given the Following Information

question 229

Multiple Choice

Calculate the value of long-term debt given the following information: total debt = $100,000; debt/equity ratio = 0.40; long-term debt ratio = 0.2308.

• A) $75,000
• B) $70,000
• C) $65,000
• D) $60,000
• E) $55,000

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Definitions:

Restrictive Indorsement

A limit placed on the use of a check or other negotiable instrument which specifies the conditions under which it can be transferred or paid out.

Bearer Paper

A negotiable instrument or security not registered in the owner's name and thus payable to the holder or presenter.

Specially Indorsed

A check or negotiable instrument that has been endorsed (signed on the back) and specifies the person to whom or to whose order the instrument is payable.

Order of Cash

The prioritization or sequence in which cash transactions are processed or recorded.