Which of the Following Ratios Would Be Most Useful for Evaluating

question 67

Multiple Choice

Which of the following ratios would be most useful for evaluating a firm's degree of leverage?

• A)Earnings-power ratio
• B)Debt-to-equity ratio
• C)Current ratio
• D)Asset turnover ratio

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Definitions:

Economics

The discipline that explores how people, government entities, companies, and countries decide to distribute limited resources to fulfill their endless desires.

Labor Force Participation Rate

The percentage of the working-age population that is part of the labor force, including both employed and unemployed individuals actively seeking employment.

United States

A country located in North America, consisting of 50 states, a federal district, five major self-governing territories, and various possessions.

1950s

The decade spanning from January 1, 1950, to December 31, 1959, marked by significant cultural, political, and economic events worldwide.