What Is the Debt to Equity Ratio for a Company

question 144

Multiple Choice

What is the debt to equity ratio for a company that has $700,000 in total liabilities and $3,500,000 in total equity?

• A)20%
• B)5
• C)$2,100,000
• D)2%
• E).5

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Definitions:

Vectors

Quantities that have both magnitude and direction, represented by arrows in physics and mathematics.

Magnitude

Refers to the size or extent of something, often used in the context of numbers, earthquakes, and vectors to denote their strength or value.

Hypotenuse

The longest side of a right-angled triangle, opposite the right angle, calculated with the Pythagorean theorem.

Inches

A unit of length in the British imperial and United States customary systems of measurement, equal to 1/12 of a foot.