Data from Kempen Corporation's most recent balance sheet and the company's income statement appear below:
-The debt-to-equity ratio at the end of Year 2 is closest to:
A)0.71
B)0.33
C)0.24
D)0.57

Question

Data from Kempen Corporation's most recent balance sheet and the company's income statement appear below:  
-The debt-to-equity ratio at the end of Year 2 is closest to:
A)0.71 
B)0.33 
C)0.24 
D)0.57

Quizplus · Accepted Answer

Debt-to-equity ratio = Total liabilities F1F1F1S1F1F1F10 Stockholders' equity = $550 F1F1F1S1F1F1F10 $970 = 0.57

Data from Kempen Corporation's Most Recent Balance Sheet and the Company's