If a Firm Has Twice as Much Equity as Debt

question 2

Multiple Choice

If a firm has twice as much equity as debt in its capital structure,then the firm has:

• A) 75.0% debt.
• B) 66.7% equity.
• C) 40.0% debt.
• D) 33.3% equity.

---

Definitions:

Architect

A professional who plans, designs, and oversees the construction of buildings.

Insurance

A financial product sold by insurance companies to safeguard against the risk of financial losses.

Construction

The process of building, erecting, or constructing buildings, roads, or other substantial structures.

Air Conditioning System

A system designed to control the temperature, humidity, and air quality in indoor spaces.