Which of the following is correct for a firm with a debt-equity ratio of .45 if long-term debt equals 500 and equity equals 2,000? The firm has:
A) current liabilities that are valued at 400.
B) current assets that are valued at 400.
C) retained earnings that are valued at 900.
D) preferred stock of 400.

Question

Quizplus · Accepted Answer

The Answer of Which of the following is correct for a firm with a debt-equity ratio of .45 if long-term debt equals 500 and equity equals 2,000? The firm has:
A) current liabilities that are valued at 400.
B) current assets that are valued at 400.
C) retained earnings that are valued at 900.
D) preferred stock of 400.

Which of the Following Is Correct for a Firm with a Debt-Equity