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

question 90

Multiple Choice

Find the debt-to-equity ratio for a firm with a debt-to-total-value ratio of ½.

• A)1
• B)2
• C)3
• D)4
• E)5

---

Definitions:

Compounded Monthly

Interest calculated on the initial principal and also on the accumulated interest of previous periods, with the process happening every month.

Compounded Semi-annually

Interest calculated on the initial principal, which also includes all of the accumulated interest from previous periods, applied twice a year.

Equivalent Cash

A term typically used to describe a sum of money that has the same value as another form of financial instrument or asset.

Compounded Semi-annually

Involves the calculation and addition of interest to the principal sum twice per year.