A Company Reports Total Assets of $850,000 and Stockholders' Equity

question 92

Multiple Choice

A company reports total assets of $850,000 and stockholders' equity of $500,000. Calculate the debt ratio.

• A)39.75%
• B)41.18%
• C)58.23%
• D)40.00%

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Definitions:

Opportunity Costs

The cost of an alternative that must be forgone in order to pursue a certain action or decision.

Production Possibility

An economic model that shows the maximum combination of goods or services that can be produced with a given set of resources.

Current State

The present condition or situation of a system, process, or subject of study.

Technology

The use of scientific understanding for functional aims, particularly within the industrial sector.