An Analyst Can Judge a Company's Level of Debt by Comparing

question 49

Multiple Choice

An analyst can judge a company's level of debt by comparing these ratios:

• A)return-on-equity to total debt-to-assets
• B)return-on-equity to total asset turnover
• C)return-on-equity to debt turnover
• D)return-on-equity to return-on-assets
• E)return-on-equity to current ratio

---

Definitions:

Survey

A research method that involves collecting information from a sample of individuals through their responses to questions in order to gather data on opinions, behaviors, or characteristics.

Randomization

A process used in experimental designs to ensure that each participant has an equal chance of being assigned to any given group, aiming to eliminate bias.

Experimentation

A method of scientific investigation involving the manipulation and control of variables to establish cause-and-effect relationships.

Independent Variables

Variables in an experiment that are manipulated or changed by the researcher to determine their effects on dependent variables.