A Firm Has Total Debt of $1,200 and a Debt-Equity

question 24

Multiple Choice

A firm has total debt of $1,200 and a debt-equity ratio of .30.What is the value of the total assets?

• A)$1,560
• B)$3,000
• C)$3,600
• D)$4,000
• E)$5,200

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Definitions:

Traveler's Checks

Traveler's Checks are preprinted, fixed-amount checks designed to allow the person signing them to make payments or exchange them for cash while traveling, offering a secure alternative to carrying cash.

Checking Account

A bank account that allows the account holder to make deposits, withdraw cash, and write checks for daily transactions.

Debit Cards

Plastic payment cards that deduct money directly from a consumer's checking account to pay for purchases, different from credit cards that borrow money from a line of credit.

Real Estate Prices

The amount of money required to purchase property, including land and buildings, which can fluctuate based on demand, location, and economic conditions.