If a Firm Has a Debt-Equity Ratio of

question 60

Multiple Choice

If a firm has a debt-equity ratio of .45, long-term debt of $500, and equity of $2,000, then:

• A) current liabilities must be $400.
• B) current assets must be $400.
• C) retained earnings must be $900.
• D)preferred stock must be $400.

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Definitions:

Collective

Pertaining to a group or assembly of individuals acting as a whole towards a common goal or sharing a common identity.

Emotional

Relates to feelings, moods, and affective states of an individual, often influencing behavior and thought processes.

Structural Cohesion

The strength of relationships and bonds within a group, facilitating its unity and resilience against external pressures.

Tuckman's Stage Model

A theory that outlines five stages of group development: forming, storming, norming, performing, and adjourning.