Current Assets 40% Total debt 40% NI 16% total assets $2000 Sales $1500 Total asset T/O 0.75 No preffered stock in capital structure What is the percetage equity? 0.1 0.2 0.4 0.6
A = L + SE
Yup should be 60%. The percentage that’s not debt…
Debt is 40% of assets = 800 so you have equity = 1200/2000 60%
This question is so annoyingly easy. total debt is 40% and what percentage is equity^%$^%#^%#. I had already started calculating so many things. One has to keep on his toes to avoid making stupid mistakes
LOL. seriously! i hate this question.