A Firm Has Assets of $250 Million,of Which $25 Million

question 67

Multiple Choice

A firm has assets of $250 million,of which $25 million is cash.It has debt of $100 million.If the firm were to repurchase $10 million of its stock,what would its new debt-to-equity ratio be?

• A)71.4%
• B)28.6%
• C)80%
• D)20%

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Definitions:

Inexperienced Witness

A witness who lacks familiarity, knowledge, or experience in the matter to which they are attesting.

Subpoena

A legal document ordering someone to attend court or produce documents or evidence for a court case.

Court Clerk

An officer of the court who manages the clerical aspects of court operations, including keeping records and assisting judges.

Opposing Counsel

The lawyer or legal team representing the opposite side or party in a legal dispute or proceeding.