The Debt-To-Equity Ratio Is Calculated by Dividing Shareholders' Equity by Total

question 164

True/False

The debt-to-equity ratio is calculated by dividing shareholders' equity by total liabilities.

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Definitions:

Firm's Output

The total quantity of goods and services produced by a company over a particular period.

Perfectly Inelastic Supply Curve

A perfectly vertical supply curve; quantity supplied remains constant no matter what happens to price.

Elastic

A characteristic of a good or service with a demand or supply that significantly changes in response to price changes.

Buyer

An individual or entity that purchases goods or services for personal use, resale, or to incorporate into the production of other goods.