If a firm has a debt to owners' equity ratio of .75 (or 75%) we can conclude that
A: it has relied more on debt than equity to finance its operations.
B: the firm is likely to have trouble paying its short-term debts when they come due.
C: its total liabilities are less than its owners' equity.
D: the firm has expenses that are exactly 75% of its gross profit.
A: it has relied more on debt than equity to finance its operations.
B: the firm is likely to have trouble paying its short-term debts when they come due.
C: its total liabilities are less than its owners' equity.
D: the firm has expenses that are exactly 75% of its gross profit.
举一反三
- A firm can be said to have competitive advantage when it has higher stock market valuations than its competitors.
- A business has assets of $140,000 and liabilities of $60,000. How much is its owners'equity? A: $0 B: $140,000 C: $80,000 D: $200,000
- 中国大学MOOC: A firm has a long-term debt ratio of 50%. This means that the book value of equity:
- The owner's equity is ______. A: the money paid by the owners at inception of a firm B: net worth of a firm C: gross profit of a firm D: the rest resources aside from liabilities
- A levered firm is one that has ________ outstanding. A: debt B: equity C: preferred stock D: equity options