Use the present value and future value tables included in Appendix 8 and on the textbook companion website.
-Hakeem, Inc. reported the following data in its 2011 financial statements: total liabilities $38,400; total stockholders' equity, $19,200; net income, $4,320; income tax expense, $2,880; and interest expense, $2,400. The debt-to-equity ratio is

Question

Use the present value and future value tables included in Appendix 8 and on the textbook companion website. 
-Hakeem, Inc. reported the following data in its 2011 financial statements: total liabilities $38,400; total stockholders' equity, $19,200; net income, $4,320; income tax expense, $2,880; and interest expense, $2,400. The debt-to-equity ratio is

Quizplus · Accepted Answer

The debt-to-equity ratio is calculated by dividing total liabilities by total stockholders' equity. Here, $38,400 / $19,200 = 2.00.

Use the Present Value and Future Value Tables Included in Appendix