A company’s balance sheet reports total liabilities of $2,000,000. The debt to equity ratio is 2.5. What is the company’s stockholders' equity?
Multiple Choice
$800,000
$2,000,000
$1,000,000
$320,000
debt to equity ratio=debt/equity
Hence stockholders equity=2,000,000/2.5
which is equal to
=$800,000
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