A Company with Long-Term Debt of 80, Lease Obligations of 20

question 67

Multiple Choice

A company with long-term debt of 80, lease obligations of 20, total assets of 1,000, and total liabilities of 350 has a:

• A)Total debt ratio of approximately .10
• B)Total debt ratio of approximately .23
• C)Long-term debt ratio of approximately .15
• D)debt-to-equity ratio of approximately .15 Equity = 1000 - 350 = 650

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Definitions:

Marginal Cost

The additional cost incurred by producing one more unit of a product or service.

Producing Unit

A part of a company or a machine that is responsible for manufacturing or creating goods.

Units

A standard measure or quantity used to specify or quantify the amount of a product, service, or resource.

Prices

The amount of money required to purchase goods or services.