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

question 44

Multiple Choice

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

• A)⅓
• B)½
• C)³/₅
• D)⅔
• E)⁵/₇

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Definitions:

Recessions

Periods of economic decline marked by falling GDP and other economic indicators, often resulting in higher unemployment rates.

Office Machines

Equipment used in an office environment for administrative or clerical tasks, such as printers, copiers, and computers.

Depreciation

The reduction in the value of an asset over time, typically due to wear and tear, obsolescence, or market conditions.

Net Investment

The total spending on new capital minus depreciation on existing capital within a given period.