Southeastern IT Systems has the following balance sheet and the income statement. The company had...

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Accounting

Southeastern IT Systems has the following balance sheet and the income statement. The company had 10 million shares of common stock outstanding and its market price of the common stock was $380.25 at the end of 2014. Make sure the unit is in million dollars. Make sure the unit is in million dollars.

(unit: $ in millions)

Southeastern IT Systems

Balance Sheets

2013

2014

2013

2014

Cash

$1,000

$1,200

Accounts payable

$800

$850

Accounts receivable

6,500

7,500

Notes payable

7,500

8,000

Inventory

1,500

2,000

Current liabilities

8,300

8,850

Current assets

9,000

10,700

Long-term debt

1,000

1,000

Net fixed assets

3,000

3,500

Common equity

500

500

Retained earnings

2,200

3,850

Total Assets

$12,000

$14,200

Total Liabilities & Owners Equity

$12,000

$14,200

Income Statement

2014

Net sales

$15,000

Cost of goods sold

10,000

Depreciation

700

EBIT

4,300

Interest expenses

400

Taxable income

3,900

Taxes

1,365

Net income

$2,535

Dividends

( )

What is the value of the D/E ratio for 2014?

69.37%

7.04%

226.44%

144.16%

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