On December 31,2015,a Company Had Assets of $16 Billion and Stockholders

question 183

Multiple Choice

On December 31,2015,a company had assets of $16 billion and stockholders' equity of $8 billion.That same company had assets of $20 billion and stockholders' equity of $9 billion as of December 31,2016.During 2016,the company reported total sales revenue of $9 billion and total expenses of $7 billion.What is the company's debt-to-assets ratio on December 31,2016?

• A) 0.55
• B) 0.45
• C) 0.035
• D) 0.01

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Definitions:

Nominal Variable

A variable used in statistics to label or categorize without a natural order or ranking.

Interval

A range of values between two points, often used in mathematics and statistics to denote a specific span of numbers.

Time-series Data

Data that consists of sequence of values or events obtained over successive times, often analyzed to understand trends, cycles, or predictions.

NYSE

The New York Stock Exchange, a prominent stock exchange located in New York City, known as a global marketplace for buying and selling stocks.