A Debt to Equity Ratio of 1

question 118

True/False

A debt to equity ratio of 1.0 means that half of the company's assets are financed by creditors.

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Definitions:

Net Present Value

A financial metric used to evaluate the profitability of an investment, accounting for its time value of money.

Capital Budgeting

The process of planning significant investments in projects that have long-term implications such as the purchase of new equipment or the introduction of a new product.

Screening Tool

A method or instrument used to assess or evaluate certain characteristics in individuals or scenarios, often used in healthcare, employment, and research.

Net Present Value

Net Present Value calculates the difference between the present value of cash inflows and the present value of cash outflows over a period, used to assess the profitability of investments.