The Debt-To-Equity Ratio Is Calculated by Dividing Total Stockholders' Equity

question 207

True/False

The debt-to-equity ratio is calculated by dividing total stockholders' equity by total liabilities.

---

Definitions:

Variable Cost

Costs that vary directly with the level of production or service delivery, such as materials and labor costs.

Tapioca Pudding

A sweet dessert made from tapioca pearls, milk or cream, sugar, and often flavored with vanilla, coconut, or other ingredients.

Opportunity Cost

is the value of the best alternative that is forgone in making any choice or decision, representing the benefits an individual, investor, or business misses out on when choosing one alternative over another.

Explicit Cost

The direct, out-of-pocket expenses incurred by a company or individual, contrasting with implicit costs which represent opportunity costs.