If the Debt Ratio Is 0

question 51

Multiple Choice

If the debt ratio is 0.5, what is the debt-equity ratio? (Assume no leases.)

• A)0.5
• B)1
• C)2
• D)4

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Definitions:

Indenture Provisions

Legal and financial terms and conditions included in the agreement of a bond issue.

Working Capital Manager

A professional responsible for managing a company's short-term assets and liabilities to ensure sufficient liquidity for daily operations.

Manufacturing Overhead

All indirect costs associated with manufacturing, including but not limited to utilities, rent, and salaries of support staff.

Accounts Payable

Accounts Payable represents a company's obligations to pay off a short-term debt to its creditors or suppliers within a given time frame.