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Fibonacci Property Management's Balance Sheet Shows Total Liabilities of $5

Question 3

Multiple Choice

Fibonacci Property Management's balance sheet shows total liabilities of $5 million and total assets of $13 million. Interest bearing liabilities total $3 million (book value) . The market value of Fibonacci's equity is $21 million. Fibonacci's debt ratio is


A) .38.
B) .23.
C) .125.
D) .24.

Correct Answer:

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