A company’s total assets amounted to $300 million at the beginning
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A company’s total assets amounted to $300 million at the beginning

A company’s total assets amounted to $300 million at the beginning of the year and $400 million at year-end. The debt-to-equity ratio at the beginning of the year was 2 to 1. The only change in stockholders’ equity during the year was the increase in retained earnings for the year’s net income of $50 million. Compute the company’s debt-to-equity ratio at year-end.

Hint
Accounts & FinanceThe debt-to-equity (D/E) ratio is simply computed by dividing a firm's total obligations by its shareholder equity. Usually, these numbers exist on the balance sheet of a firm's financial statements. Hence the formula of D/E is total liabilities / total assets....

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