Find the Debt-To-Value Ratio for a Firm with a Debt-To-Equity

question 71

Multiple Choice

Find the debt-to-value ratio for a firm with a debt-to-equity ratio of 1/2.

• A)1/3
• B)1/2
• C)3/5
• D)2/3

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Definitions:

Debt

An amount of money borrowed by one party from another, typically under the agreement that it is to be repaid with interest.

Promissory Estoppel

A legal principle that prevents a party from withdrawing a promise when the other party has reasonably relied on that promise to their detriment.

Consideration

Something of value promised to another when making a contract, which is required for the contract to be legally binding.

Contract Law

The body of law that regulates the making, enforcement, and interpretation of agreements between parties.