Assume the Following Data: Long-Term Debt = 100; Value of Leases

question 41

Multiple Choice

Assume the following data: Long-term debt = 100; Value of leases = 20; Book value of equity = 80; Market value of equity = 100.Calculate the debt-equity ratio.

• A)0.50
• B)0.60
• C)1.00
• D)1.50

---

Definitions:

Location Decisions

The process of selecting a geographical location for a company's operations, facilities, or warehouses.

Quality Of Education

A measure of how well education systems, institutions, and processes turn resources into learning outcomes and the development of students.

Revenue Potential

an estimate of the maximum sales revenue a business can achieve in a given market under current conditions.

Service Firms

Businesses that provide intangible products or services to consumers, as opposed to tangible goods.