A Firm with No Leases Has a Long-Term Debt-Equity Ratio

question 43

Multiple Choice

A firm with no leases has a long-term debt-equity ratio of 50%.This means that the book value of equity:

• A)equals the book value of long-term debt.
• B)is less than the book value of long-term debt.
• C)is greater than the book value of long-term debt.
• D)is unknown in relation to the book value of long-term debt.

---

Definitions:

Vernix Caseosa

A white creamy substance that covers the skin of the fetus during pregnancy, providing protection.

Fetoscopy

A medical procedure involving the insertion of a fetoscope to visually examine a fetus inside the uterus.

Ultrasound

A medical imaging technique that uses high-frequency sound waves to create images of structures within the body.

Amniocentesis

A medical procedure used in prenatal diagnosis, involving the extraction of a small amount of amniotic fluid surrounding the fetus to study genetic and chromosomal information.