How Is the Debt/equity Ratio Calculated

question 10

Multiple Choice

How is the debt/equity ratio calculated?

• A) Shareholders' equity/Total assets
• B) Shareholders' equity/Long-term debts
• C) Total assets/Shareholders' equity
• D) Long-term debts/Shareholders' equity

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Definitions:

Internal Strengths

Unique capabilities within an organization that provide it with a competitive advantage in its industry.

Good Management

The practice of effectively and efficiently leading and organizing resources, including people, to achieve the goals of an organization.

Good Organization

A well-structured entity with efficient processes, clear objectives, and effective communication among its members.

Good Planning

The process of defining objectives, strategies, and actions to achieve goals effectively and efficiently.