What Is Debt-Equity Ratio? (Use 2012 Values)

question 63

Multiple Choice

What is debt-equity ratio? (Use 2012 values)

• A)0.52
• B)0.87
• C)0.94
• D)1.01
• E)1.06

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Definitions:

Sales-Type Lease

A leasing arrangement where the lessor recognizes immediate profit on the leased asset as in a sale, based on the difference between the fair value of the leased asset and its cost or carrying amount.

Direct-Financing Lease

A lease agreement where the lessor effectively finances the asset for the lessee, recognizing interest revenue over the lease term.

Credit-Approved Customers

Individuals or entities that have been evaluated and deemed creditworthy by a lender, allowing them to receive goods or services in advance of payment.

Present Value Interest Factors

Present value interest factors are used to calculate the present value of a future amount of money or stream of cash flows given a specific interest rate.