Recent financial statement data for Harmony Health Foods (HHF) Inc. is shown below.

Current liabilities $180 Income before interest and taxes $125

10% Bonds, long-term 360 Interest expense 36

Total liabilities 540 Income before tax 89

Stockholders’ equity Income tax 27

Common stock 200 Net income $62

Retained earnings 280

Total stockholders’ equity 480

Total liabilities and equity $1,020

HHF's debt to equity ratio is (rounded to two decimal places):

A) 1.13.

B) 1.80.

C) 0.75.

D) 0.38.

pur-new-sol

Related Questions

Current liabilities	$180	Income before interest and taxes	$125
10% Bonds, long-term	360	Interest expense	36
Total liabilities	540	Income before tax	89
Stockholders’ equity		Income tax	27
Common stock	200	Net income	$62
Retained earnings	280
Total stockholders’ equity	480
Total liabilities and equity	$1,020