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:

Side Braces

Structural components used to provide lateral support to a building or framework, preventing sideways movement.

Zinc-Plated Bolt

A bolt coated with a thin layer of zinc to protect against corrosion, commonly used in various construction and manufacturing applications.

MRP Tables

Tables utilized in Material Requirements Planning that detail the schedule of components needed, their quantities, and the timing for manufacturing or assembly processes.

Bill of Material

A comprehensive list detailing all the raw materials, parts, components, and assemblies needed to produce one unit of a product.