if-a-company-has-750000-in-liabilities-and-500000-in-equity-what-is-the-debt-to-

Question

If a company has $$750,000 in liabilities and 500$$,000 in equity, what is the debt to equity ratio and what does it suggest about the company's leverage?

Accepted Answer

1.5, suggesting the company relies more on debt than equity.

Answer

0.67, suggesting the company relies more on equity than debt.

Answer

1.0, suggesting equal reliance on debt and equity.

Answer

2.0, suggesting the company is highly leveraged.

If a company has \$750,000 in liabilities and \$500,000 in equity, what is the debt to equity ratio and what does it suggest about the company's leverage?