Which of the Following Statements Regarding the Debt to Equity

question 55

Multiple Choice

Which of the following statements regarding the debt to equity ratio is correct?

• A)A high ratio means that the company is primarily financed through stockholder investments.
• B)A higher ratio is preferred.
• C)It is a measure of a company's ability to pay its debt.
• D)It is a measure of investor and creditor risk.

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Definitions:

Independent Self

A self-concept that emphasizes personal goals, values, and beliefs over the desires and needs of others; common in individualistic societies.

Emotional Deficits

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