If a Firm Has Three Times as Much Equity as Debt

question 45

Multiple Choice

If a firm has three times as much equity as debt in its capital structure,then the firm is financed with:

• A) 25.0% debt.
• B) 90.0% equity.
• C) 40.0% debt.
• D) 33.3% debt.

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Definitions:

Mental Illness

Disorders that affect mood, thinking, and behavior, potentially disrupting an individual's ability to function in daily life.

Psychological Maladjustment

A condition where an individual’s psychological behavior does not align with the accepted standards, leading to issues in functioning within society or personal discomfort.

Mood Disorders

Psychological disorders characterized by the elevation or lowering of a person's mood, such as depression or bipolar disorder.

Enriched Environments

Settings or conditions that provide increased stimulation through physical, social, and intellectual means, enhancing learning and development.