A Firm Has Total Assets of $3,000,000

question 60

Multiple Choice

A firm has total assets of $3,000,000. It has $1,200,000 in long-term debt. The stockholders equity is $1,000,000. What is the debt-to-total asset ratio?

• A)45%
• B)75%
• C)55%
• D)67%

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Definitions:

Solution Set

The complete set of all possible solutions that satisfy a given equation or system of equations.

Set Notation

A systematic way of representing a set and its elements using braces and specific symbols to denote operations and relationships.

Intersection Symbol

Generally represented by ∩, it denotes the common elements between two sets.

Union Symbol

In set theory, a symbol (∪) that denotes the union of two sets, meaning it combines all the elements from both sets, excluding duplicates.