Question

"Charger Company's most recent balance sheet reports total assets of $27,000,000, total liabilities of $15,000,000 and total equity of $12,000,000. The debt to equity ratio for the period is"________________.

Answer 1

Answer:

Debt to equity ratio = 1.25

Explanation:

given data

total assets = $27,000,000

total liabilities = $15,000,000

total equity = $12,000,000

solution

we get here debt to equity ratio that is express as

Debt to equity ratio = Total liabilities ÷ Total equity ............................1

put here value and we get

Debt to equity ratio = $\frac{15000000}{12000000}$          

solve it we get

Debt to equity ratio = 1.25