A Firm Has a Debt-Equity Ratio of

question 10

Multiple Choice

A firm has a debt-equity ratio of .40. What is the total debt ratio?

• A) .29
• B) .33
• C) .67
• D) 1.40
• E) 1.50

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Definitions:

Inside Information

Privileged, non-public information about a company that could provide a financial advantage in the stock market if used.

Corporate Employees

Individuals who are employed by corporations and contribute to its operations and success through their work.

Corporate Securities

Refers to financial instruments issued by corporations, such as stocks and bonds, representing an ownership stake or a debt obligation.

Ponzi Scheme

A fraudulent investing scam promising high rates of return with little risk to investors, which generates returns for older investors through revenue paid by new investors, rather than from legitimate business activities.