What is Cornucopia's debt to value ratio?
Cornucopia's liabilities and equity are shown below:
Accounts Payable $500,000
Accrued Expenses 250,000
Short-term Note at 5% 300,000
Long-Term Debt 1,250,000
Common Equity, Book Value 2,500,000
Common Equity, Market Value 6,000,000
A) .48
B) .32
C) .21
D) .30
Answer: C
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