Use this information to answer the following question. The debt to equity ratio is

Question

Use this information to answer the following question.  The debt to equity ratio is

Quizplus · Accepted Answer

To calculate the debt to equity ratio, we divide the total liabilities by total shareholder's equity. From the given information in the image, we can see that the total liabilities are $465,000 and the total shareholders equity is $885,000.

Debt to equity ratio = Total Liabilities / Total Shareholders Equity
= 465,000 / 885,000
= 0.52

Therefore, the correct answer is C) .52.

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