Opal Company has total assets of $600,000 and total liabilities of $200,000.The company's debt-to-equity ratio is closest to:
A) 0.35.
B) 0.15.
C) 0.50.
D) 0.20.

Question

Quizplus · Accepted Answer

Debt-to-Equity Ratio = Total Liabilities / Total Stockholders' Equity*
= $200,000 / $400,000
= 0.50
 *Total stockholders' equity = Total Assets- Total Liabilities
= $600,000 - $200,000
= $400,000

Opal Company Has Total Assets of $600,000 and Total Liabilities