Jordan Manufacturing Reports the Following Capital Structure What Is the Debt Ratio?
A)0

Jordan Manufacturing reports the following capital structure: $$\begin{array} { l r } \text { Current liabilities } & \$ 100,000 \\\text { Long-term debt } & 400,000 \\\text { Deferred income taxes } & 10,000 \\\text { Preferred stock } & 80,000 \\\text { Common stock } & 100,000 \\\text { Premium on common stock } & 180,000 \\\text { Retained earnings } & 170,000\end{array}$$ What is the debt ratio?

A) 0.48
B) 0.49
C) 0.93
D) 0.96
E) None of the answers are correct.