The following information is available for the Larry Company:
$\begin{array} { l }
\text { Net income for the year ended December 31,2014}&\$127.4\
\text { Total stockholders' equity, December 31, 2014 }&500.0\
\text { Total stockholders' equity, December 31, 2013 }&400.0\
\text { Total liabilities, December 31, 2014}&240.0\
\text { Total liabilities, December 31,2013}&182.0\
\end{array}$

What is the debt-to-equity ratio at December 31,2014?
A) 27%
B) 41%
C) 48%
D) 51%

Question

The following information is available for the Larry Company:
$\begin{array} { l  }
 \text { Net income for the year ended December 31,2014}&\$127.4\
 \text { Total stockholders' equity, December 31, 2014 }&500.0\
 \text { Total stockholders' equity, December 31, 2013 }&400.0\
 \text {  Total liabilities, December 31, 2014}&240.0\
 \text {  Total liabilities, December 31,2013}&182.0\
\end{array}$

What is the debt-to-equity ratio at December 31,2014?
A) 27%
B) 41%
C) 48%
D) 51%

Quizplus · Accepted Answer

The debt-to-equity ratio is calculated as Total Liabilities divided by Total Stockholders' Equity. For December 31, 2014, it is $ \frac{240.0}{500.0} = 0.48 $ or 48%.

The Following Information Is Available for the Larry Company What Is the Debt-To-Equity Ratio at December 31,2014? A) 27

The Following Information Is Available for the Larry Company What Is the Debt-To-Equity Ratio at December 31,2014?
A) 27