Which of the Following Is Considered a Leverage Ratio

question 152

Multiple Choice

Which of the following is considered a leverage ratio?

• A) Debt ratio
• B) Return on total assets
• C) Profit margin on sales
• D) Conversion ratio
• E) Inventory turnover

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Definitions:

GIC

Guaranteed Investment Certificate, a Canadian investment that offers a guaranteed rate of return over a fixed period.

Maturity Value

The total amount that will be paid out or received at the end of a financial instrument's term, including principal and interest.

Semi-Annually Compounded

Interest on an investment or loan that is calculated and added to the principal balance twice a year.

Quarterly Compounded

Interest is added to the principal every three months, with subsequent interest calculations based on the resulting total.