The balance sheet of montezuma reports stockholders' equity of $400,000, total liabilities of $600,000, and total assets of $1,000,000. what is montezuma's debt to equity ratio?

this is a direct variation proportion. y = kx

y is the total amount due, k is the constant of variation, and x is the number of texts sent.

plug in the 3.20 and the 16 to solve for the "k". this is the constant of proportionality. it is the value that will not change.

3.20 = k(16). solving you get $.20 per text.

the equation would then be y = .20x