A firm has total assets of $2,000,000. It has $900,000 in long-term debt. The stockholders equity is $900,000. What is the total debt to asset ratio?
A. 45%
B. 40%
C. 55%
D. none of the above
Answer:C
A firm has total assets of $2,000,000. It has $900,000 in long-term debt. The stockholders equity is $900,000. What is the total debt to asset ratio?
A. 45% B. 40% C. 55% D. none of the above