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    Business Study Set 1
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    Exam 14: Understanding Accounting Issues
  5. Question
    Delavan Company Has Fixed Assets of $5 Billion,current Assets of $2
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Delavan Company Has Fixed Assets of $5 Billion,current Assets of $2

Question 3

Question 3

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 $5 billion.What is Delavan's debt-to-equity ratio?


A) .6
B) .9
C) 1.2
D) .4
E) .8

Correct Answer:

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