The Ability to Add Debt Financing to the Current Borrowing

question 88

True/False

The ability to add debt financing to the current borrowing of the firm and be able to make interest and principal repayments on time is known as the firm's debt-to-equity ratio.

---

Definitions:

Hydrogen Ions

Positively charged ions (H+) generated when a hydrogen atom loses its electron, playing a crucial role in chemical reactions, including acid-base chemistry.

Proximal Tubules

Proximal tubules are part of the nephron in the kidney, responsible for reabsorbing water, ions, and nutrients from the filtrate and returning them to the blood.

Potassium Ions

Positively charged ions (K+) essential for various cellular processes, including nerve transmission, muscle contraction, and maintaining fluid balance within cells.

Ammonium Ions

Positively charged ions (NH4+) derived from ammonia, significant in the nitrogen cycle and plant nutrition.