The Formula for Calculating the Debt-To-Equity Ratio Is

question 153

Multiple Choice

The formula for calculating the debt-to-equity ratio is

• A)total liabilities divided by total stockholders' equity.
• B)total liabilities divided by stockholders' equity provided by preferred stockholders.
• C)long-term liabilities divided by total stockholders' equity.
• D)long-term liabilities divided by stockholders' equity provided by preferred stockholders.

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Definitions:

Estimate

An estimate is a rough calculation or judgment of the value, number, quantity, or extent of something.

Monthly Sales

The total amount of sales generated by a business during a calendar month.

Experience

The knowledge or skill acquired by direct participation in events or activities.

Least Squares Method

A statistical technique used to determine the line of best fit by minimizing the sum of the squares of the distances of the points from the line.