Multiple Choice
Which of the following is correct for a firm with a debt-equity ratio of .45 if long-term debt equals 500 and equity equals 2,000? The firm has:
A) current liabilities that are valued at 400.
B) current assets that are valued at 400.
C) retained earnings that are valued at 900.
D) preferred stock of 400.
Correct Answer:
Verified
Correct Answer:
Verified
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