Which of the Following Ratios Would Be Most Useful for Evaluating

question 67

Multiple Choice

Which of the following ratios would be most useful for evaluating a firm's degree of leverage?

• A)Earnings-power ratio
• B)Debt-to-equity ratio
• C)Current ratio
• D)Asset turnover ratio

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Definitions:

Eccentric

Referring to behavior or habits that are unusual or unconventional.

Cluster A

Odd or eccentric personality disorders; “weird” or “mad.”

Antisocial

Behaving in a way that is against societal norms, often harming others or lacking consideration for their well-being.

Dependent

Relying on someone or something else for support, sustenance, or survival; in research, a variable expected to change in response to another variable.