If Your Debt-To-Equity Ratio Is About 1, You Have Probably

question 91

True/False

If your debt-to-equity ratio is about 1, you have probably reached the upper limit of debt obligations.

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Definitions:

Preferred Dividends

Dividends that are paid to preferred shareholders at a fixed rate before any dividends are paid to common shareholders.

Earnings Per Share

A measure of a company's profitability calculated by dividing net income by the number of outstanding shares of its common stock.

Net Income

The total profit of a company after all expenses, including taxes and operating expenses, have been deducted from total revenue.

Preferred Dividends

Dividends that are paid out to preferred shareholders before any dividends are distributed to common shareholders, often at a fixed rate.