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:

Net Cash Flows

The difference between cash inflows and cash outflows in a business over a specific period, indicating the net amount of cash generated or used.

Payback Period

This is the duration required to recover the cost of an investment.

Income From Operations

The earnings generated from a company's regular, core business operations.

Net Cash Flows

The difference between a company's cash inflows and outflows within a specified period.