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.

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Definitions:

Whisky Consumption

The amount of whisky that is drunk or used within a specific period by individuals or groups.

Spaghetti Consumption

The quantity of spaghetti consumed over a given period, often used as an indicator in dietary or food economic studies.

Utility Function

A mathematical representation of how different goods or bundles of goods provide satisfaction to a consumer.

Spaghetti Consumption

The amount of spaghetti eaten, often measured in terms of quantity over a specific time period.