A debt-to-assets ratio of 0.50 indicates that the company has:
A)more liabilities than stockholders' equity.
B)equal amounts of liabilities and stockholders' equity.
C)more stockholders' equity than liabilities.
D)no liabilities.

Question

Quizplus · Accepted Answer

A debt-to-assets ratio of 0.50 indicates the proportion of total assets that creditors finance is 0.50;as such,an equal proportion is from equity financing.

A Debt-To-Assets Ratio of 0