If a Company Has a Debt to Equity Ratio of 1:48

question 36

True/False

If a company has a debt to equity ratio of 1:48, it means that for every $1 of equity, the company has $1.48 in liabilities.

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Definitions:

Objective Truth

Truth independent of our personal opinions and demonstrably true to anyone (who is in the proper position to observe, who has the right testing equipment, and so on).

Justified True Belief

A traditional model in epistemology that defines knowledge as a belief that is both true and justified by sufficient evidence or reasoning.

Knowledge

Knowledge or proficiency gained from direct experience or instruction; insight into a subject via its study or application in a practical or theoretical manner.

Corresponds to Facts

The alignment or agreement of a statement, theory, or belief with the actual state of affairs or reality.