The following information pertains to Jasmin Corporation. Assume that all balance sheet amounts represent both average and ending figures. Jasmin Corporation had 6,000 shares of common stock issued and outstanding. The market price of Jasmin common stock on December 31, 2009, was $20. Jasmin paid dividends of $0.90 per share during 2009.
What is the debt to equity ratio for this corporation? Round your answer to 1 decimal place.
A) 0.4 times
B) 0.6 times
C) 1.0 times
D) 2.5 times

Question

The following information pertains to Jasmin Corporation. Assume that all balance sheet amounts represent both average and ending figures.   Jasmin Corporation had 6,000 shares of common stock issued and outstanding. The market price of Jasmin common stock on December 31, 2009, was $20. Jasmin paid dividends of $0.90 per share during 2009.
What is the debt to equity ratio for this corporation? Round your answer to 1 decimal place.
A) 0.4 times 
B) 0.6 times 
C) 1.0 times 
D) 2.5 times

Quizplus · Accepted Answer

To calculate the debt to equity ratio, we need to divide total liabilities by total equity. However, the information provided in the question only gives us the amount of common stock outstanding (which represents equity) and no information about total liabilities. Therefore, we cannot calculate the debt to equity ratio with the given information.

The Following Information Pertains to Jasmin Corporation