Debt Management Ratios Tierre's Ts, Inc

question 82

Multiple Choice

Debt Management Ratios Tierre's Ts, Inc. reported a debt to equity ratio of 3 times at the end of 2011. If the firm's total assets at year-end are $15 million, how much of their assets is financed with equity?

• A) $3.75m
• B) $5m
• C) $11.25m
• D) $45m

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Definitions:

Atomic Components

The fundamental elements or parts that make up a larger system, often considered as the most basic and indivisible units.

Contingency

A prospective happening or condition that might occur but is unpredictable with absolute certainty.

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A statement in logic and mathematics that is true in every possible interpretation, or a redundant statement that doesn't convey new information.

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A system of symbols used to represent numbers, operations, relations, or concepts.