A firm has total assets of $1,000,000. It has $300,000 in long-term liabilities. Thestockholders equity is $300,000. What is the total debt ratio?  My Bad Surgery Centers of America has a debt-equity ratio of 2. What is My Bad total debt ratio?  Oops Van Lines has a total debt ratio of 0.5, total debt of $100,000, net income of$20,000. What is the return on equity?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter3: Evaluation Of Financial Performance
Section: Chapter Questions
Problem 20P
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A firm has total assets of $1,000,000. It has $300,000 in long-term liabilities. The
stockholders equity is $300,000. What is the total debt ratio?

 My Bad Surgery Centers of America has a debt-equity ratio of 2. What is My Bad total debt ratio?


 Oops Van Lines has a total debt ratio of 0.5, total debt of $100,000, net income of
$20,000. What is the return on equity?

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