If a Firm Has Three Times as Much Equity as Debt

question 45

Multiple Choice

If a firm has three times as much equity as debt in its capital structure,then the firm is financed with:

• A) 25.0% debt.
• B) 90.0% equity.
• C) 40.0% debt.
• D) 33.3% debt.

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Definitions:

Synapses

The junctions at which neurons communicate with each other through neurotransmitters.

Hormones

Chemical messengers produced by the endocrine glands that regulate various bodily functions and processes.

Circadian Rhythm

The natural, internal process that regulates the sleep-wake cycle and repeats roughly every 24 hours.

Mates

Refers to individuals chosen as partners for reproduction or companionship, typically within the context of romantic or sexual relationships.