If Seams Friendly, Inc. has a debt ratio of 49.7%, what is the company's debt-to equity ratio (as a fraction rounded to 2 decimal places that is, do not convert to a percent; for example, the correct answer for debt-to-equity =80/35=2.2857 would be 2.29). A. 1.27 B. 0.62 C. 1.43 D. 0.99 E. 0.44

Kierra Griffith

Kierra Griffith

Answered question

2022-11-25

If Seams Friendly, Inc. has a debt ratio of 49.7%, what is the company's debt-to equity ratio (as a fraction rounded to 2 decimal places that is, do not convert to a percent; for example, the correct answer for debt-to-equity 80 35 = 2.2857 would be 2.29).
A. 1.27
B. 0.62
C. 1.43
D. 0.99
E. 0.44

Answer & Explanation

desecat9qs

desecat9qs

Beginner2022-11-26Added 10 answers

Debt ratio  = 49.7 % Debt Debt + Equity = 49.7 % Debt + Equity Debt = 100 49.7 1 + Equity Debt = 100 49.7 Equity Debt = 100 49.7 1 Equity Debt = 50.3 49.7 Debt E q u i t y = 49.7 50.3 Debt E q u i t y = 0.99  Answer
Option D

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