A company has a debt of $100,000 and equity of $50,000. What is its debt-to-equity ratio?

Practice Questions

1 question
Q1
A company has a debt of $100,000 and equity of $50,000. What is its debt-to-equity ratio?
  1. 2:1
  2. 1:2
  3. 1:1
  4. 3:1

Questions & Step-by-step Solutions

1 item
Q
Q: A company has a debt of $100,000 and equity of $50,000. What is its debt-to-equity ratio?
Solution: Debt-to-Equity Ratio = Total Debt / Total Equity = 100,000 / 50,000 = 2:1.
Steps: 6

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