If the Debt Ratio Is 0

question 57

Multiple Choice

If the debt ratio is 0.5 what is the debt-equity ratio? (assume no leases)

• A) 0.5
• B) 1.0
• C) 2.0
• D) 4.0

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Definitions:

Liability

The legal responsibility for one's actions or inaction, which may result in financial compensation or legal penalties.

Declaration of Value

An official statement indicating the market value of property or goods, often required for insurance purposes or in the context of shipping and customs.

Watches

Portable timepieces designed to be worn or carried, allowing the user to keep track of time.

Warehouse

A large building where raw materials or manufactured goods may be stored before their distribution for sale.