Use this information to answer the following question.
-The debt to equity ratio is
A)0.46.
B)0.67.
C)2.18.
D)0.33.

Question

Use this information to answer the following question.  
-The debt to equity ratio is
A)0.46. 
B)0.67. 
C)2.18. 
D)0.33.

Quizplus · Accepted Answer

The debt to equity ratio is calculated by dividing total liabilities by shareholders' equity. The correct answer, A) 0.46, suggests that for every dollar of equity, the company has 46 cents of debt. This ratio is a measure of financial leverage, indicating the balance between the amount of debt used to finance the company's assets and the amount of value represented by shareholders' equity.

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