You can judge whether a firm's debt is excessive by comparing one firm's ________ against others in the industry.
A) multiplier
B) invoices
C) assets
D) liabilities

Question

Quizplus · Accepted Answer

The multiplier, also known as the debt-to-equity ratio, measures how much debt a company has compared to its equity. By comparing a firm's debt multiplier to others in the same industry, you can determine whether the level of debt is excessive or within the industry norm.

You Can Judge Whether a Firm's Debt Is Excessive by Comparing