Hartzog Corporation's most recent balance sheet and income statement appear below: Dividends on common stock during Year 2 totaled $60 thousand. Dividends on preferred stock totaled $5 thousand. The market price of common stock at the end of Year 2 was $7.04 per share.
-The debt-to-equity ratio at the end of Year 2 is closest to:
A)0.61
B)0.28
C)0.53
D)0.19

Question

Hartzog Corporation's most recent balance sheet and income statement appear below:   Dividends on common stock during Year 2 totaled $60 thousand. Dividends on preferred stock totaled $5 thousand. The market price of common stock at the end of Year 2 was $7.04 per share.
-The debt-to-equity ratio at the end of Year 2 is closest to:
A)0.61 
B)0.28 
C)0.53 
D)0.19

Quizplus · Accepted Answer

Debt-to-equity ratio = Total liabilities F1F1F1S1F1F1F10 Stockholders' equity
= $460 F1F1F1S1F1F1F10 $860 = 0.53

Hartzog Corporation's Most Recent Balance Sheet and Income Statement Appear