The company's debt-to-equity ratio equals:A) 0.58B) 1.27C) 2.07D) 0.37E) 0.63

Question

Cristina Benitez · Accepted Answer

Final Answer : A, Explanation :  The debt-to-equity ratio is calculated by dividing a company's total liabilities by its shareholder equity. The correct answer, 0.58, suggests that for every dollar of equity, the company has 58 cents of debt. This ratio is a measure of the degree to which a company is financing its operations through debt versus wholly-owned funds.

The company's debt-to-equity ratio equals:

A) 0.58
B) 1.27
C) 2.07
D) 0.37
E) 0.63

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Learning Objectives

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The company's debt-to-equity ratio equals: A) 0.58B) 1.27C) 2.07D) 0.37E) 0.63

Definitions

Learning Objectives

Learning Objectives

Related questions

The company's debt-to-equity ratio equals:

A) 0.58
B) 1.27
C) 2.07
D) 0.37
E) 0.63