A Firm Has Total Assets of $638,727, Current Assets of $203,015

question 96

Multiple Choice

A firm has total assets of $638,727, current assets of $203,015, current liabilities of $122,008, and total debt of $348,092.What is the debt-equity ratio?

• A)1.03
• B)1.20
• C)1.31
• D)1.43
• E).87

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Definitions:

Depreciates

A decline in the value of an asset over time due to wear and tear, obsolescence, or market conditions.

British Pound

The official currency of the United Kingdom, also known as GBP or Sterling.

Exchange-rate Systems

These are frameworks established by countries to govern how their currencies exchange with one another, including floating, fixed, and pegged exchange rates.

Flexible-rate

A type of exchange rate regime where the value of a currency is allowed to fluctuate according to the foreign exchange market forces of supply and demand.