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

question 141

Multiple Choice

Calculate the value of long-term debt given the following information: total debt = $100,000; debt/equity ratio = 0.50; long-term debt ratio = 0.32.

• A) $72,000
• B) $74,000
• C) $76,000
• D) $78,000
• E) $94,118

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Definitions:

Proximate Cause

A legal concept that establishes the cause of an injury as being sufficiently related to an actionable event or condition to justify liability.

Securities and Exchange Commission

A U.S. federal agency responsible for enforcing federal securities laws and regulating the securities industry and the nation's stock and options exchanges.

Financial Statement

A formal record of the financial activities and position of a business, person, or other entity, typically including balance sheets, income statements, and cash flow statements.

Constructive Fraud

Deception or misrepresentation made without the intent to deceive, usually due to neglect or failure to fulfill a duty, which causes harm to another party.