The Following Information Pertains to Jasmin Corporation Jasmin Corporation Had 6,000 Shares of Common Stock Issued and Balance

question 120

Multiple Choice

The following information pertains to Jasmin Corporation. Assume that all balance sheet amounts represent both average and ending figures. $\begin{array}{|l|l|}\hline \text { Jasmin Corporation } \\\hline \text { Partial Balance Sheet } \\\hline \text { December 31, 20xx } \\\hline \text { Liabilities and Stockholders' Equity } \\\hline \text { Current liabilities } & \$ 60,000 \\\hline \text { Long-term liabilities } & 90,000 \\\hline \text { Stockholders' equity } & 150,000 \\\hline \text { Total liabilities and stockholders' equity } & \$ 300,000 \\\hline\end{array}$

$\begin{array}{|l|r|}\hline \text { Jasmin Corporation } \\\hline \text { Income Statement } \\\hline \text { For the Year Ended December } 31,20 \mathrm{xx} \\\hline \text { Net sales } & \$ 80,000 \\\hline \text { Cost of goods sold } & 45,000 \\\hline \text { Gross margin } & \$ 35,000 \\\hline \text { Operating expenses } & 15,000 \\\hline \text { Income before income taxes } & \$ 20,000 \\\hline \text { Income taxes expense } & 5.000 \\\hline \text { Net income } & \$ 15,000 \\\hline\end{array}$ Jasmin Corporation had 6,000 shares of common stock issued and outstanding. The market price of Jasmin common stock on December 31, 20xx, was $20. Jasmin paid dividends of $0.90 per share during 20xx.
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What is the debt to equity ratio for this corporation? Round your answer to one decimal place.

• A) 0.4 times
• B) 0.6 times
• C) 1.0 times
• D) 2.5 times

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Definitions:

Propan-1-Amine

An organic compound with the formula C3H9N, consisting of a propyl group attached to an amine functional group.

Nitrosonium Ion

A positively charged ion with the formula NO+, known for its role in organic nitrogen compound synthesis.

Secondary Amines

Organic compounds where a nitrogen atom is bonded to two carbon atoms, often represented as NHR2, where R denotes organic substituents.

N-Nitrosoamines

Organic compounds containing the functional group NNO, known for their roles as carcinogens.