What Is the Approximate Total Debt Ratio for a Firm

question 69

Multiple Choice

What is the approximate total debt ratio for a firm with a total debt to equity ratio of .65?

• A)35 percent
• B)39 percent
• C)54 percent
• D)65 percent If total debt/equity = .65
• Then total liabilities/total assets = .65/1.65

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Definitions:

Ammeter Shunt

A device used to change the full scale value of an ammeter by providing another path for current flow. Most ammeter shunts produce a voltage drop of 50 millivolts when rated current flows through them.

Low-resistance

A characteristic of a material or component that allows a large amount of electrical current to pass through with minimal opposition.

Spike

A sudden, sharp increase or peak in the magnitude of a variable, often used in the context of electrical voltage or signals.

Low Values

Refers to measurements or quantities that are significantly below average or expected levels.