How Is the Leverage Ratio Calculated

question 9

Multiple Choice

How is the leverage ratio calculated?

• A)total debt divided by total assets
• B)total assets divided by total debt
• C)average total assets divided by average common stockholders' equity
• D)average total debt divided by average total assets

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Definitions:

Quantity Demanded

Quantity demanded is the total amount of a good or service that consumers are willing and able to purchase at a given price over a specified period.

Demand Schedule

A tabular representation showing the quantity of a good that consumers are willing and able to purchase at different prices, holding other factors constant.

Excise Tax

A tax directly levied on certain goods, services, or activities, often included in the price of the product.

Improved Technology

Advances or enhancements in technology that lead to better efficiency, productivity, or outcomes in various fields.