Charger Company's most recent balance sheet reports total assets of $27,000,000, total liabilities of $15,000,000 and total equity of $12,000,000. The debt to equity ratio for the period is (rounded to two decimals):

Question

Quizplus · Accepted Answer

Debt to equity ratio is calculated by dividing total liabilities by total equity.
Debt to equity ratio = Total liabilities / Total equity
= 15,000,000 / 12,000,000
= 1.25
Therefore, the answer is C) 1.25

Charger Company's Most Recent Balance Sheet Reports Total Assets of $27,000,000