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11 November, 01:25

Laundry reported assets of $ 1 comma 100 and equity of $ 630. What is Stub's debt ratio? (Round your answer to the nearest whole number.) A. 43 % B. 57 % C. 75 % D. Not enough information is provided

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  1. 11 November, 04:29
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    37% (not given in the option

    Explanation:

    The debt ratio is a financial measures that shows the leverage of the organization. It is a ratio of total debt to total assets, expressed as a percentage. This measures makes known how much of the company's assets is owned in debt.

    From the accounting equation

    Assets = debts + equity

    $1,000 = debts + $630

    Debt = $1,000 - $630

    = $370

    Stub's debt ratio

    = $370/$1000

    = 0.37

    = 37%
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