If a Firm Has Twice as Much Equity as Debt

question 2

Multiple Choice

If a firm has twice as much equity as debt in its capital structure,then the firm has:

• A) 75.0% debt.
• B) 66.7% equity.
• C) 40.0% debt.
• D) 33.3% equity.

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Definitions:

Biochemical Explanations

Theories suggesting that psychological conditions and behaviors are influenced by biochemical processes and imbalances in the body.

Bipolar Disorder

A psychiatric disorder marked by severe fluctuations in mood, ranging from manic or hypomanic highs to depressive lows.

Ion Activity

The measure of the effective concentration of ions in a solution, affecting the chemical reactivity and interactions among ions in biological and chemical systems.

Cyclothymic Disorder

A mood disorder characterized by chronic, fluctuating mood disturbance involving numerous periods of hypomanic symptoms and periods of depressive symptoms.