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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Definitions:

Trade Secret

A type of intellectual property consisting of a formula, practice, process, design, instrument, pattern, or compilation of information that is not generally known and which provides a business with a competitive advantage.

Conflict of Ownership

A situation where two or more parties claim legal rights or interests in the same property, leading to disputes over ownership.

Trademark Protection

Legal measures and rights granted to the owner of a trademark to protect it from unauthorized use and infringement.

Generic Marks

Trademarks that have become common names for the products or services they represent and lack distinctiveness.