The Current Balance Sheet of Blawnox Inc

question 19

Multiple Choice

The current balance sheet of Blawnox Inc.reports total assets of $20 million,total liabilities of $2 million,and owners' equity of $18 million.Blawnox Inc.is considering several financing possibilities in order to expand operations.What is the additional amount that Blawnox Inc.can borrow and not exceed a debt-to-equity ratio of 0.3?

• A)$5.4 million
• B)$3.4 million
• C)$5.5 million
• D)$4.0 million

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Equality

The state of being equal, especially in status, rights, and opportunities.

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