Identify the Correct Formula Below Used to Calculate the Debt

question 102

Multiple Choice

Identify the correct formula below used to calculate the debt ratio.

• A)Total Equity/Total Liabilities.
• B)Total Liabilities/Total Equity.
• C)Total Liabilities/Total Assets.
• D)Total Assets/Total Liabilities.
• E)Total Equity/Total Assets.

---

Definitions:

Maximin Strategy

A decision rule which aims to maximize the minimum payoff attainable, often used under conditions of uncertainty.

Payoffs

The returns or benefits received from a particular action or investment.

Nash Equilibrium

A concept within game theory where each player's strategy is optimal, given the strategies of other players, and no player has anything to gain by changing their own strategy alone.

Dominant Strategy

A strategy in a game theory context that is best for a player regardless of what strategies other players choose.