Delavan Company Has Fixed Assets of $5 Billion, Current Assets

Multiple Choice

Delavan Company has fixed assets of $5 billion, current assets of $2 billion, long-term liabilities of $2 billion, current liabilities of $1 billion, and owners' equity of $2 billion. What is Delavan's debt-to-equity ratio?

A) 1.5
B) 0.9
C) 1.2
D) 0.4
E) 0.8