Realm Company Has Fixed Assets of $4 Billion,current Assets of $1.7

question 172

Multiple Choice

Realm Company has fixed assets of $4 billion,current assets of $1.7 billion,long-term liabilities of $2 billion,and current liabilities of $0.34 billion.What is Realm's current ratio?

• A) 2
• B) 5
• C) 5.88
• D) 5.1
• E) 6.33

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Definitions:

Voting Rights

The rights of shareholders to vote on key corporate decisions, such as the election of the board of directors.

Preemptive Rights

The rights that give existing shareholders the opportunity to buy additional shares of a company's new stock issue before the public, maintaining their percentage of ownership.

Retained Earnings

The portion of net income that is retained by the corporation rather than distributed to its owners as dividends, typically used for reinvestment in the business or paying down debt.

Stockholders' Equity

The remaining interest in a company's assets after all debts have been subtracted, indicating the owners' stake.