If a Firm Has a Debt-Equity Ratio of

question 60

Multiple Choice

If a firm has a debt-equity ratio of .45, long-term debt of $500, and equity of $2,000, then:

• A) current liabilities must be $400.
• B) current assets must be $400.
• C) retained earnings must be $900.
• D)preferred stock must be $400.

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Definitions:

Humility

A personal quality characterized by a lack of arrogance or pride and a recognition of one's limitations and the value of others.

Societal Impact

The effect an organization, individual, or action has on the broader social, economic, and environmental context in which it operates.

Leader Empowerment

The process of increasing the capacity of individuals to make choices and to transform those choices into desired actions and outcomes.

Organizational Performance

A measure of how effectively and efficiently an organization achieves its goals and objectives.