Trends in Ratios That Measure the Relationship Between Debt and Equity

question 34

Multiple Choice

Trends in ratios that measure the relationship between debt and equity provide information about how many of the following?
Long term stability
Degree of risk in using debt financing
Margin of safety to creditors in the event of liquidation

• A) 0
• B) 1
• C) 2
• D) 3