Ratio of liabilities to stockholder's equity:
Ratio of liabilities to stockholders' equity shows the relationship between the liabilities and the stockholder’s equity. This ratio measures the claims of creditors over the claims of owners in financing the assets. A lower ratio indicates that the company has good ability to pay off the creditors’ obligations.
To determine: Total stockholder’s equity at the end of the years 2 and 1 for Company LC.
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