A Company Has Total Liabilities of $550 Million and Total

question 69

Multiple Choice

A company has total liabilities of $550 million and total equity of $300 million.Calculate this company's debt ratio.

• A)64.7%
• B)100%
• C)54.5%
• D)1.83 to 1
• E)The debt ratio cannot be determined without additional information.

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Definitions:

Government Policy

A course of action or a set of decisions adopted by a government or a political entity to influence or guide a wide range of activities and behaviors.

Equitable Remedy

A form of legal relief sought in a lawsuit that requires a party to act or refrain from acting, rather than merely paying damages.

Statutory Law

Laws that have been written and enacted by a legislative body, as opposed to common law developed by courts.

Legislative Bodies

Legislative Bodies are formal assemblies or groups vested with the authority to make, amend, and repeal laws, such as parliaments or congresses.