A Firm Has $100 Million in Current Liabilities,$200 Million in Total

question 61

Multiple Choice

A firm has $100 million in current liabilities,$200 million in total long-term liabilities,$300 million in stockholders' equity,and total assets of $600 million.Calculate the debt ratio for the firm.

• A)40%
• B)20%
• C)50%
• D)33%

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Definitions:

Self-Reliance

Dependence on one's own efforts and abilities; the quality of not needing support, help, or approval from others.

Personality Hardiness

A trait characterized by resilience and the ability to endure stressful situations effectively.

Supportive Attachments

Emotional and psychological bonds that provide individuals with a sense of security and support.

Overdependence

A reliance on something or someone to an excessive degree.