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-Use the above figure. When the budget line rotates from "b" to "c"
Debt-to-equity Ratio
A financial ratio indicating the relative proportion of shareholders' equity and debt used to finance a company's assets, key in assessing financial leverage.
Assets
Resources owned by a business or individual that are expected to provide future economic benefits.
Equity
The value of an ownership interest in property or a business, after deducting liabilities from assets.
Return on Sales Ratio
A financial ratio that measures the efficiency of a company in generating operating profit from its revenue.
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