What Is the Debt Ratio for a Firm with a Debt-Equity

question 34

Multiple Choice

What is the debt ratio for a firm with a debt-equity ratio of 0.5?

• A) 35%
• B) 33.3%
• C) 54%
• D) 66.7%

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Definitions:

Benchmark

A standard or point of reference against which things may be compared or assessed, often used in performance analysis.

Evaluate Performance

The process of assessing the efficiency, effectiveness, and productivity of individuals, groups, or systems.

Resource Driver

A factor that influences the consumption of resources in the production of goods or services, used for more accurate allocation of costs in activity-based costing.

Cost Estimate

An approximation of the expected cost to complete a project, task, or transaction, based on available information.