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

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