Given the Following Data: Long Term Debt = 100; Value

question 49

Multiple Choice

Given the following data: Long term debt = 100; Value of leases = 20; Book value of equity = 80; Market value of equity = 100, calculate the debt-equity ratio.

• A) 0.50
• B) 0.60
• C) 1.50
• D) 1.0

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Definitions:

Weekly Payments

Payments that are made once every week, often used in employment or loan repayment plans.

Annually Compounded

Describes the process where interest is added to the principal sum of a loan or investment once per year, allowing the interest to accumulate over time.

Promotion

Marketing strategies aimed at increasing the visibility, sales or acceptance of a product or service.

Monthly Compounded

The process of calculating interest each month and adding it to the total amount owed, thus earning interest on interest from the following month.