If a Firm Has a Debt-Equity Ratio of 1

question 75

Multiple Choice

If a firm has a debt-equity ratio of 1.0, then its total debt ratio must be which one of the following?

• A) 0
• B) 0.5
• C) 1.0
• D) 1.5
• E) 2.0

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Definitions:

Unconditioned Stimulus

A stimulus that naturally and automatically triggers a response without prior learning.

Feeling Happy

A state of well-being and contentment, characterized by positive emotions ranging from contentment to intense joy.

Ring Tone

A sound made by a telephone to indicate an incoming call or text message.

Neutral Stimulus

A stimulus that initially produces no specific response other than focusing attention before conditioning.