given-the-following-data-total-liabilities-of-300000-and-total-assets-of-750000-

Question

Given the following data: total liabilities of $300,000 and total assets of $750,000, calculate the debt to asset ratio and discuss its implications for the company's financial health.

Accepted Answer

Debt to asset ratio is 0.4, indicating moderate financial risk.

Answer

Debt to asset ratio is 0.6, indicating very high financial risk.

Answer

Debt to asset ratio is 0.25, indicating low financial risk.

Answer

Debt to asset ratio is 0.5, indicating high financial risk.

Given the following data: total liabilities of \$300,000 and total assets of \$750,000, calculate the debt to asset ratio and discuss its implications for the company's financial health.