If your debt-to-equity ratio is about ½, you have reached the upper limit of debt obligations.

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Quizplus · Accepted Answer

A debt-to-equity ratio of ½ indicates that you have equal amounts of debt and equity. This does not necessarily mean that you have reached the upper limit of debt obligations, as it depends on various factors like the industry, business model, and risk appetite. Some companies may comfortably handle higher levels of debt, while others may struggle with even lower levels. It is important to analyze the company's financial statements, cash flows, and overall financial health before determining the suitable debt levels.

If Your Debt-To-Equity Ratio Is About ½, You Have Reached