Assume Apex Borrows $2 Million to Finance Its Expansion

question 118

Multiple Choice

Assume Apex borrows $2 million to finance its expansion. Apex's debt ratio immediately after the borrowing will be:

• A) .10.
• B) .20.
• C) .33 (rounded).
• D) .18.

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Definitions:

Underground Railroad

A network of secret routes and safe houses established in the United States during the early to mid-19th century, used by African-American slaves to escape into free states and Canada.

Canada

A country in North America, known for its vast landscapes, multicultural communities, and bilingual (English and French) character.

Trains

Rail vehicles for the transportation of goods and passengers along railways.

Wilmot Proviso

An unsuccessful 1846 proposal in the United States aiming to ban slavery in territory acquired from Mexico.