On the balance sheet,a company reports total assets of $8 million,common shares (book value)of $4 million,and retained earnings of $2 million.The debt-to-asset ratio is:
A) 0.25
B) 0.50
C) 0.75
D) None of the above

Name: On the balance sheet,a company reports total assets of $8 million,common shares (book value)of $4 million,and retained earnings of $2 million.The debt-to-asset ratio is: A) 0.25 B) 0.50 C) 0.75 D) None of the above
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Quizplus · Accepted Answer

Debt = 8-(4+2)=2,D/A = 2/8 = .25

On the Balance Sheet,a Company Reports Total Assets of $8