What Is the Approximate Total Debt Ratio for a Firm

question 104

Multiple Choice

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

• A) 35%
• B) 39%
• C) 54%
• D)65%

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Definitions:

Physical Capital

The tangible assets such as buildings, machinery, and equipment used in the production of goods and services.

Human Capital

The collective skills, knowledge, and experience possessed by an individual or population, viewed in terms of their value to an organization or society.

Capital Per Employee

A measure of how much capital investment is allocated per employee, indicating the level of investment in tools, technology, and equipment to enhance productivity.

Human Capital

The collective skills, knowledge, or other intangible assets of individuals that can be used to create economic value for the individuals, their employers, or the community.