Doolitte & Daley,Inc.has current assets of $100,000; total assets of $300,000; current liabilities of $80,000; total liabilities of $180,000; and shareholders' equity of $120,000.Calculate the debt-to-equity ratio.
A)125%
B)60%
C)40%
D)150%

Question

Quizplus · Accepted Answer

The debt-to-equity ratio is calculated by dividing total liabilities by shareholders' equity. Here, it is $180,000 / $120,000 = 1.5, which is equivalent to 150%.