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    Principles of Corporate Finance Study Set 5
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    Exam 14: An Overview of Corporate Financing
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    A Firm Has $100 Million in Current Liabilities, $200 Million
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A Firm Has $100 Million in Current Liabilities, $200 Million

Question 17

Question 17

Multiple Choice

A firm has $100 million in current liabilities, $200 million in total long-term liabilities and
$300 million in stockholders' equity, total assets of $600 million. Calculate the debt ratio for the firm.


A) 40%
B) 20%
C) 50%
D) None of the above

Correct Answer:

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