What would a firm's debt ratio be if it financed one quarter of its assets with debt and three quarters with owner's equity?
A) 75%
B) 50%
C) 33%
D) 25%

Name: What would a firm's debt ratio be if it financed one quarter of its assets with debt and three quarters with owner's equity? A) 75% B) 50% C) 33% D) 25%
Brand: Quizplus
Rating: 4.7 (33 reviews)

Question

Quizplus · Accepted Answer

The debt ratio is calculated as total debt divided by total assets. If one quarter of the assets are financed by debt, then the debt ratio is 25%.

What Would a Firm's Debt Ratio Be If It Financed