Immediately before Cavecreek Corporation purchased 4,000 shares of its own common stock for $25 a share, it had total liabilities of $200,000 and total shareholders' equity of $520,000. Calculate Cavecreek's debt/equity ratio immediately subsequent to the purchase of the treasury stock.

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The Answer of Immediately before Cavecreek Corporation purchased 4,000 shares of its own common stock for $25 a share, it had total liabilities of $200,000 and total shareholders' equity of $520,000. Calculate Cavecreek's debt/equity ratio immediately subsequent to the purchase of the treasury stock.

Immediately Before Cavecreek Corporation Purchased 4,000 Shares of Its Own