On January 1, 2011, a Company Has Assets of $16

question 21

Multiple Choice

On January 1, 2011, a company has assets of $16 billion and stockholders' equity of $8 billion. On January 1, 2012, the same company has assets of $20 billion and stockholders' equity of $9 billion. During 2011, the
Company had total sales revenue of $9 billion and total expenses of $7 billion. The company's debt -to-assets ratio on January 1, 2012 is:

• A) 0.55
• B) 0.45
• C) 0.035
• D) 0.01

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