On the Balance Sheet,a Company Reports Total Assets of $8

question 80

Multiple Choice

On the balance sheet,a company reports total assets of $8 million,common shares (book value) of $4 million,and retained earnings of $2 million.The debt-to-equity ratio is:

• A) 0.33
• B) 1.00
• C) 2.00
• D) 3.00

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Definitions:

Quantity Sold

The actual number of units of a product that have been sold in the market over a specific time period, reflecting market demand.

Market Price

The current price at which goods or services are bought and sold in a competitive marketplace.

Price Floor

A floor price established by the government or regulatory authority, representing the lowest legal selling price for a specific product or service.

Market Efficiency

The degree to which stock prices reflect all available, relevant information, making it impossible to consistently achieve higher returns.