MCQs > Finance & Management > Financial Accounting > Miller Investments has $50,000 in liabilities and $50,000 in stockholders’ equity. If Miller issues debt with warrants of $50,000, and attached warrants are valued at $10,000, the firm’s debt-to-equity ratio after the issue will be:

Financial Accounting MCQs

Miller Investments has $50,000 in liabilities and $50,000 in stockholders’ equity. If Miller issues debt with warrants of $50,000, and attached warrants are valued at $10,000, the firm’s debt-to-equity ratio after the issue will be:

Answer

Correct Answer: 1.5

Explanation:

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