Dairy King has total assets of $325 million. Its total liabilities are $110 million. Its equity is $315 million. Calculate the debt ratio.
A) 13.4%
B) 38.6%
C) 34.9%
D) 14.9%
E) 33.8%

Name: Dairy King has total assets of $325 million. Its total liabilities are $110 million. Its equity is $315 million. Calculate the debt ratio. A) 13.4% B) 38.6% C) 34.9% D) 14.9% E) 33.8%
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Quizplus · Accepted Answer

The debt ratio is calculated as total liabilities divided by total assets. So, $110 million / $325 million = 0.338 or 33.8%.

Dairy King Has Total Assets of $325 Million