CompUS has pledged $275,000 worth of its assets.The total book value of its assets is $625,000.The firm's total liabilities are $750,000.The secured liabilities are $150,000.The pledged assets to secured liabilities is
A)1.2
B)1.8
C)2.3
D)2.7
E)5.0

Question

Quizplus · Accepted Answer

Pledged assets = $275,000
Secured liabilities = $150,000
Therefore, pledged assets to secured liabilities ratio = $275,000/$150,000 = 1.8333
The closest option to this is B) 1.8.

CompUS Has Pledged $275,000 Worth of Its Assets