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

question 91

Multiple Choice

Find the debt-to-value ratio for a firm with a debt-to-equity ratio of 2½.

• A)1/3
• B)1/2
• C)3/5
• D)5/7

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Definitions:

Price Ceiling

A legally imposed maximum price on a good or service, usually set below the equilibrium price to keep the goods affordable for consumers.

Equilibrium Price

The cost at which the amount of a product or service being sought matches the amount available, resulting in a stable market.

Price Ceiling

A government-imposed limit on how high the price of a product can be charged in the market to protect consumers from excessive prices.

Government

The organization that governs or administers a specific territory or country, responsible for creating and enforcing laws, policies, and regulations.