Hannah has liabilities totaling $30,000 (excluding her mortgage of $100,000). Her net worth is $45,000. What is her debt-to-equity ratio?

Name: Hannah has liabilities totaling $30,000 (excluding her mortgage of $100,000). Her net worth is $45,000. What is her debt-to-equity ratio?
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Question

Quizplus · Accepted Answer

Debt-to-equity ratio = Total liabilities / Net worth

Total liabilities = $30,000
Net worth = $45,000

Debt-to-equity ratio = $30,000 / $45,000 = 0.67

Therefore, the answer is B, 0.67.

Hannah Has Liabilities Totaling $30,000 (Excluding Her Mortgage of $100,000)