Question

the elevator pitch math quiz
question 7 of 10: your company has equity of $580,000 and total liabilities of $340,000. what is your company’s debt - to - equity ratio?
a) 0.55
b) 0.59
c) 0.63
d) 0.77

Explanation:

Step1: Recall debt - to - equity formula

Debt - to - equity ratio = $\frac{Total\ Liabilities}{Equity}$

Step2: Substitute given values

Total liabilities = $340000$, Equity = $580000$. So, $\frac{340000}{580000}\approx0.59$

Answer:

B. 0.59