When Examining the Debt to Equity Ratio of a Company

question 34

True/False

When examining the debt to equity ratio of a company, consideration should be given to pension liabilities. Specifically, it should be determined if the projected benefit obligation significantly exceeds the plan assets and if it does compare this to any liability recorded on balance sheet.

---

Definitions:

Environmental Disasters

are destructive events caused by human activity or natural phenomena that severely affect the environment, ecosystems, and human communities. These disasters include oil spills, nuclear meltdowns, and extreme weather events exacerbated by climatic changes.

Love Canal

A neighborhood in Niagara Falls, New York, known for the environmental disaster caused by the dumping of toxic waste.

Three Mile Island

The location of the most significant accident in U.S. commercial nuclear power plant history, occurring in 1979, which initiated widespread changes in nuclear industry regulation and operational practices.

Productivity

A measure of the efficiency of production, often calculated as the ratio of output (goods and services) produced per unit of input (labor, materials, energy) used.