Debt Management Ratios Trina's Trikes, Inc. reported a debt-to-equity ratio of 1.94 times at the end of 2018. If the firm's total debt at year-end was $10.60 million, how much equity does Trina's Trikes have? Multiple Choice$5.46 million$20.56 million$10.60 million$1.94 million

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Asked Sep 12, 2019
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Debt Management Ratios Trina's Trikes, Inc. reported a debt-to-equity ratio of 1.94 times at the end of 2018. If the firm's total debt at year-end was $10.60 million, how much equity does Trina's Trikes have?

 

Multiple Choice

  1. $5.46 million

  2. $20.56 million

  3. $10.60 million

  4. $1.94 million

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Expert Answer

Step 1

Debt to equity ratio is the ratio of total debt to total equity in the company.

Step 2

Hence, total debt / total equity = 1.94

Hence, total equity =...

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