A Firm Has a Debt-Equity Ratio of 0

question 54

Multiple Choice

A firm has a debt-equity ratio of 0.36.What is the total debt ratio?

• A)0)26
• B)0)29
• C)0)67
• D)0)71
• E)0)74

---

Definitions:

Mechanistic Organization

A form of organization characterized by a clear, rigid structure, a strict hierarchy, and a focus on efficiency and predictability.

Centralized

A system or organization where decision-making and authority are concentrated in a single point or location, typically at the top.

Decentralized

The distribution of decision-making governance closer to the level of individual operations or regions, as opposed to being concentrated at a central point of command.

M-Form

Stands for the Multidivisional Form, a type of organizational structure where a company is divided into semi-autonomous units or divisions, each with its own responsibilities for profit and loss.