Which of the Following Statements About the Debt-To-Equity Ratio Is

question 19

Multiple Choice

Which of the following statements about the debt-to-equity ratio is NOT true?

• A) A high ratio indicates that the company is highly geared.
• B) From a creditor's point of view,a higher measure is desirable.
• C) The debt-to-equity ratio indicates the proportion of borrowing to owners' investment.
• D) The debt-to-equity ratio shows the degree of risk borne by the creditors vis-à-vis the shareholders.

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Definitions:

Prostaglandins

Lipid compounds that have diverse hormone-like effects in animals, including inflammation mediation and smooth muscle contraction.

Alkaline Fluid

A solution with a pH greater than 7, indicating it has fewer hydrogen ions and is basic in nature.

Nutritive Fluid

A liquid rich in nutrients that provides essential nourishment to organisms or cells for growth and maintenance.

Epididymis

A coiled tube that receives sperm from the testis and conveys it to the vas deferens.