Bailey Corporation Reported the Following Information for 20X1 Bailey's Debt/equity Ratio Was
A)

question 54

Multiple Choice

Bailey Corporation reported the following information for 20X1: $$\begin{array} { | l | r | } \hline \text { Profit } & \$ 10,000 \\\hline \text { Total assets } & 16,000 \\\hline \text { Total shareholders' equity } & 8,000 \\\hline\end{array}$$ Bailey's debt/equity ratio was

• A) .33 or 33%.
• B) 1.0 or 100%.
• C) 1.25 or 125 %.
• D) 3.0 or 300%.

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