If Your Debt-To-Equity Ratio Is About 1, You Have Probably

question 91

True/False

If your debt-to-equity ratio is about 1, you have probably reached the upper limit of debt obligations.

---

Definitions:

Issue Costs

Expenses associated with the issuance of new securities, including underwriting, legal, and registration fees.

Stock Price

The current value at which a share of a company is bought or sold in the stock market.

Subscription Price

The cost at which existing shareholders can purchase additional shares of stock in a company, often at a discount, during a rights offering.

Rights Offering

A process where a company offers its existing shareholders the opportunity to buy additional shares at a discounted price before offering them to the public.