What Does the Debt-To-Equity Ratio Show

question 104

Multiple Choice

What does the debt-to-equity ratio show?

• A) The proportion of a company's total financing that is accomplished by borrowing
• B) The amount of profit earned by one share of common stock
• C) The ability of a company to pay off its current liabilities
• D) The potential for growth in the price of a share of stock

---

Definitions:

Equality Before Law

The principle that each individual is subject to the same laws, with no individual or group having special legal privileges.

Fourteenth Amendment

An amendment to the U.S. Constitution, ratified in 1868, that grants citizenship to all persons born or naturalized in the United States, including former slaves, and provides all citizens with equal protection under the laws.

U.S. Constitution

The supreme law of the United States, establishing the framework of the national government and the rights of the citizens.

Bill Of Rights

First ten amendments to the U.S. Constitution, adopted in 1791 to guarantee individual rights against infringement by the federal government.