Shares outstanding of common stock = 1,000,000
Shares outstanding of preferred stock = 500,000
Market price of common stock = $18.
-The Total Debt to Total Asset ratio is:
A) 58.82%
B) 0.59
C) 0.7647%
D) 1.31

Question

Shares outstanding of common stock = 1,000,000 
Shares outstanding of preferred stock = 500,000 
Market price of common stock = $18.
-The Total Debt to Total Asset ratio is:
A) 58.82% 
B) 0.59 
C) 0.7647% 
D) 1.31

Quizplus · Accepted Answer

Total Debt to Total Asset ratio = Total Debt / Total Assets = 100 / 170 = 0.5882 = 58.82%

Shares Outstanding of Common Stock = 1,000,000