Hamilton Industries has liabilities of $105 million and total assets of $350 million. Its debt ratio is 40.0%.
$105 million/$350 million = 30.0%

Question

Quizplus · Accepted Answer

The correct calculation of the debt ratio is total liabilities divided by total assets, which is $105 million divided by $350 million equals 0.3 or 30.0%. Therefore, the statement in the question is incorrect and the answer is B.

Hamilton Industries Has Liabilities of $105 Million and Total Assets