The ________ is calculated by dividing total liabilities by total shareholders' equity.
A)debt-to-equity ratio
B)long-term-debt-to-total capital ratio
C)debt-to-total-assets ratio
D)interest-coverage ratio
E)current ratio

Question

Quizplus · Accepted Answer

The debt-to-equity ratio is calculated by dividing total liabilities by total shareholders' equity. It measures the proportion of a company's funding that comes from debt versus equity.

The ________ Is Calculated by Dividing Total Liabilities by Total