The liabilities of a company at the end of the year are $530,000 and the total stockholders' equity at the end of the year is $1,080,000. The debt to stockholders' equity ratio is: (Round your answer two decimal places.)
A) 0.49 to 1.
B) 0.33 to 1.
C) 0.67 to 1.
D) 3.04 to 1.

Question

Quizplus · Accepted Answer

The debt to stockholders' equity ratio is calculated as total liabilities divided by total stockholders' equity. So, $530,000 / $1,080,000 = 0.4907, which rounds to 0.49 to 1.

The Liabilities of a Company at the End of the Year