If a Firm Has Three Times as Much Equity as Debt

question 42

Multiple Choice

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

• A) 25.0% debt.
• B) 66.7% equity.
• C) 40.0% debt.
• D) 33.3% equity.

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Definitions:

Harvest

The process of gathering mature crops from the fields or collecting the outcomes of any labor.

Organizational Control

Refers to the processes and procedures that businesses use to regulate and guide their operations towards achieving set objectives and standards.

Motivated Expert

An individual who possesses a high level of expertise in a specific area and has a strong drive or motivation to apply this expertise towards achieving defined objectives.

Control Subsystem

Part of an organization's management system focused on monitoring and adjusting processes to meet objectives.