A Company Reports Total Assets of $920,000 and Stockholders' Equity

question 18

Multiple Choice

A company reports total assets of $920,000 and stockholders' equity of $520,000.Calculate the debt ratio.(Round your answer to two decimal places. )

• A)36.11%
• B)43.48%
• C)56.52%
• D)76.92%

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Definitions:

Par Value

The nominal or face value of a bond, stock, or coupon as stated by the issuer, which is typically not indicative of its market value.

Stated Value

A nominal value assigned by a company to its issued shares, which may be above or below the market value.

Shares

Units of ownership in a company, typically traded on a stock exchange, representing a portion of the corporate equity.

Treasury Stock

Shares that were issued and later reacquired by the issuing company.