A firm has total assets of $4,000,000. liabilities of $2,000,000 and stockholders equity is $2,000,000. What is the debt-to-total asset ratio? Group of answer choices 50% 34% 45% 55%

Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter1: The Role Of Accounting In Business
Section: Chapter Questions
Problem 4SEQ: If total assets are $20,000 and total liabilities are $12,000, the amount of stockholders’ equity...
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A firm has total assets of $4,000,000. liabilities
of $2,000,000 and stockholders equity is
$2,000,000. What is the debt-to-total asset
ratio?
Group of answer choices
50%
34%
45%
55%
Transcribed Image Text:A firm has total assets of $4,000,000. liabilities of $2,000,000 and stockholders equity is $2,000,000. What is the debt-to-total asset ratio? Group of answer choices 50% 34% 45% 55%
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