The leverage ratio is equal to average total ________ divided by average ________.
A)debt;total assets
B)debt;common stockholders' equity
C)long-term debt;common stockholders' equity
D)assets;common stockholders' equity

Question

Quizplus · Accepted Answer

The leverage ratio is calculated by dividing average total assets by average common stockholders' equity, which measures the extent to which a company is financing its operations through debt versus wholly owned funds.

The Leverage Ratio Is Equal to Average Total ________ Divided