Which of the Following Is Correct for a Firm with a Debt-Equity

question 54

Multiple Choice

Which of the following is correct for a firm with a debt-equity ratio of .45 if long-term debt equals 500 and equity equals 2,000? The firm has:

• A) current liabilities that are valued at 400.
• B) current assets that are valued at 400.
• C) retained earnings that are valued at 900.
• D) preferred stock of 400.

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