Total liabilities at New Fashion Stores, Inc. are $5 million, and total owners' equity is $4 million. The company's debt to equity ratio is ________.

Name: Total liabilities at New Fashion Stores, Inc. are $5 million, and total owners' equity is $4 million. The company's debt to equity ratio is ________.
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Quizplus · Accepted Answer

The debt to equity ratio is calculated by dividing total liabilities by total owners' equity. Here, $5 million / $4 million = 1.25.

Total Liabilities at New Fashion Stores, Inc