Asked by Kaylee Rabon on Jun 05, 2024

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The debt-to-equity ratio is calculated by dividing stockholders' equity attributable to common shareholders by total liabilities.

Stockholders' Equity

The residual interest in the assets of a company that remains after deducting its liabilities, representing ownership interest.

Total Liabilities

The sum of all financial obligations (debts) owed by a company to external entities or individuals.

  • Determining and understanding the debt-to-equity ratio's implications for evaluating corporate financial risk.
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CS
CAITLYN STANKOVICJun 05, 2024
Final Answer :
False
Explanation :
The debt-to-equity ratio is calculated by dividing total liabilities by stockholders' equity attributable to common shareholders.