The Debt-To-Equity Ratio Is Defined as Total Long-Term Liabilities Divided

question 48

True/False

The debt-to-equity ratio is defined as total long-term liabilities divided by total stockholders' equity.

---

Definitions:

Discounted Cash Flow

A valuation method used to estimate the attractiveness of an investment opportunity, using future cash flows adjusted to their present value.

Risk Adjustment

Risk adjustment is the process of correcting estimates, prices, or values to account for uncertainties or known risks.

Capital Budgeting Committee

A group within an organization responsible for evaluating and making decisions about long-term investment projects and capital expenditures.

Net Present Value

A method used in capital budgeting to evaluate the profitability of an investment by calculating the difference between the present value of cash inflows and outflows.