A firm has a total debt ratio of 0.30 times. This means the firm has
Blank
______ in total debt for every $1 in total assets.

Question

A firm has a total debt ratio of 0.30 times. This means the firm has 
Blank
______ in total debt for every $1 in total assets.

BlackTom AI · Accepted Answer

Total debt ratio equals total debt divided by total assets, so a ratio of 0.30 indicates 30% of the firm’s assets are financed with debt.

1. Relevant knowledge points and concepts
- Definition: Total debt ratio = Total debt / Total assets.
- Interpretation: The ratio gives how many dollars of debt exist for each dollar of assets (or the percentage of assets financed by debt).
- Complement: Equity ratio = 1 − total debt ratio, giving the portion financed by owners’ equity.

2. Step-by-step reasoning
- Start from the definition: Total debt ratio = Total debt / Total assets = 0.30.
- Ask: If total assets = $1, what is total debt? Rearranged: Total debt = Total assets × Total debt ratio.

3. Calculations with intermediate steps
- Set Total assets = $1.
- Total debt = 1 × 0.30 = 0.30.
- Convert to dollars/cents: 0.30 dollars = $0.30 = 30 cents.

4. Why the correct answer is correct
- The calculation directly applies the ratio definition. A 0.30 ratio means 0.30 dollars of debt for each dollar of assets, so $0.30 is the correct value per $1 of assets.

5. Why the other options are incorrect
- $0.03 corresponds to a total debt ratio of 0.03 (3%), not 0.30 (30%).
- $0.70 would be the equity portion per $1 of assets (1 − 0.30 = 0.70), not the debt portion.
- $0.07 corresponds to a ratio of 0.07 (7%), which does not match the given 0.30.

6. Conclusion
Therefore, the firm has $0.30 in total debt for every $1 in total assets. This matches the provided correct answer: $0.30.

A firm has a total debt ratio of 0.30 times. This means the firm has Blank ______ in total debt for every $1 in total assets.单项选择题

类似问题

2. A typical flying car costs about Answer Question 2[input] times more than a regular car.

2. A typical flying car costs about Answer Question 2[input] times more than a regular car.

2. A typical flying car costs about Answer Question 2[input] times more than a regular car.

A product has a sales price of $150 and a per-unit contribution margin of $50. What is the contribution margin ratio? Please answer to 2 decimal places

Basic proportions for boiling long grain white rice are

When building a mini-boat, a boat builder uses 1 pound of wood and 2 ounces of glue. If he/she has 9 pounds of wood and 6 ounces of glue, how many mini-boat(s) will he/she be able to build?

In a 1050-room competitive set, Hotel A has 300 rooms. Hotel B has 350 rooms, and Hotel C has 400 rooms. During a recent 30-day period in which the entire competitive set sold 25,400 rooms, Hotel A sold 8,000 rooms. Which of the following statements is indisputably TRUE?

更多留学生实用工具

智能学习助手

风格化写作助手

论文查重助手

文献引用助手

课堂转译助手

课堂笔记助手

Quiz搜索助手

学校历年真题

智能刷题助手

智能匹配练习

希望你的学习变得更简单