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MC Qu. 120 The current balance sheet of Apex reports.... The current balance she

ID: 2360484 • Letter: M

Question

MC Qu. 120 The current balance sheet of Apex reports....

The current balance sheet of Apex reports total assets of $42 million, total liabilities of $13 million, and owners' equity of $29 million. Apex is considering several financing possibilities in order to expand operations. Each question based on this data is independent of any others.

Assume Apex borrows $5 million to finance its expansion. Apex's debt ratio immediately after the borrowing will be:

The current balance sheet of Apex reports total assets of $42 million, total liabilities of $13 million, and owners' equity of $29 million. Apex is considering several financing possibilities in order to expand operations. Each question based on this data is independent of any others.

Explanation / Answer

.12 is the correct option.