If a Firm Has a Debt-Equity Ratio of 1

question 5

Multiple Choice

If a firm has a debt-equity ratio of 1.0,then its total debt ratio must be which one of the following?

• A)0.0
• B)0.5
• C)1.0
• D)1.5
• E)2.0

---

Definitions:

Wilms Tumor

A type of kidney cancer that primarily affects children.

Glioblastoma

An aggressive type of cancer that can occur in the brain or spinal cord, known for its rapid growth and resistance to treatment.

Nephroma

A term sometimes used to describe a kidney tumor, which can be benign or malignant.

Oncogenes

Genes that have the potential to cause a normal cell to become cancerous when mutated or expressed at high levels.