GenCorp Has a Total Debt of $140 Million and Stockholders

question 45

Multiple Choice

GenCorp has a total debt of $140 million and stockholders' equity of $50 million.It also has 25 million shares outstanding,with a market price of $3.50 per share.What is GenCorp's market debt-equity ratio?

• A)0.36
• B)0.63
• C)1.02
• D)1.60

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Definitions:

Statement Of Retained Earnings

A financial statement that details changes in retained earnings, including net income and dividends, for a specific period.

Balance Sheet

A financial report detailing a company's financial status at a particular moment, presenting assets, liabilities, and shareholders' equity.

Cash Dividends

The issuing of cash dividends from earnings to shareholders by a corporation.

Income Statement

A financial statement that shows a company’s revenue, expenses, and profit over a specific period.