A Firm with No Leases Has a Long-Term Debt Ratio

question 58

Multiple Choice

A firm with no leases has a long-term debt ratio of 50%.This means that the book value of equity:

• A) equals the book value of long-term debt.
• B) is less than the book value of long-term debt.
• C) is greater than the book value of long-term debt.
• D) is unknown in relation to the book value of long-term debt.