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CTP · Question #659

CTP Question #659: Real Exam Question with Answer & Explanation

The correct answer is D. 1.37.. See the full explanation below for the reasoning.

Question

  • (Topic 7) The following information about a company is at the end of its fiscal year. The before-tax cost of long-term debt is 10% and the cost of equity is 12%. The marginal tax rate is 35%. The company's current ratio is:

Options

  • A0.46.
  • B0.59.
  • C0.93.
  • D1.37.

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