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A Firm Has Total Assets of $3,000,000

Question 60

Multiple Choice

A firm has total assets of $3,000,000. It has $1,200,000 in long-term debt. The stockholders equity is $1,000,000. What is the debt-to-total asset ratio?


A) 45%
B) 75%
C) 55%
D) 67%

Correct Answer:

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