A company has total assets of $5,600,482,common stock of $2,111,111,and retained earnings of $1,058,473.What is the company's debt ratio?
A)43.41%
B)65.00%
C)41.57%
D)50.00%
E)42.81%

Question

Quizplus · Accepted Answer

Debt ratio = Total debt / Total assetsTotal debt = Total assets - Common stock - Retained earningsTotal debt = $5,600,482 - $2,111,111 - $1,058,473Total debt = $2,430,898Debt ratio = $2,430,898 / $5,600,482Debt ratio = 0.4341 or 43.41%

A Company Has Total Assets of $5,600,482,common Stock of $2,111,111,and