Financial Leverage Is Best Measured by Which of the Following

question 103

Multiple Choice

Financial leverage is best measured by which of the following ratios?

• A)The debt to equity ratio.
• B)The return on equity ratio.
• C)The times interest earned ratio.
• D)The return on assets ratio.

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Definitions:

Nitrogen

A chemical element with symbol N and atomic number 7, it is a non-metallic gas that makes up 78% of the Earth's atmosphere by volume.

Formula

A symbolic representation of the composition of a compound, indicating the elements present and the ratio of atoms or ions.

Cyanate Ion

A negatively charged ion or anion with the formula OCN-, derived from cyanic acid.

Cyanide Ion

An anion with the formula CN−, known for its high toxicity, it can form various inorganic and organic compounds.