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Options
-
0.26
Correct answer
- B
3.41
- C
0.74
- D
1
Why this is the answer
Equity = Assets – Liabilities = 100,000 – 74,000 = 26,000. Equity to Asset Ratio = Equity / Assets = 26,000 / 100,000 = 0.26. Other options miscalculate the ratio.
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