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Question 18 5 Points The debt to asset ratio mesures the proportion of all assets financed by debt. It provides a balance sheet perspective on
Question 18 5 Points The debt to asset ratio mesures the proportion of all assets financed by debt. It provides a balance sheet perspective on leverage. Analysts also look at the role of debt to provide a somewhat more subtle measure of leverage by emphasizing the mix of debt and equity. You have the following information: Total Debt $4,500,000 Total Assets $12,600,000 Total Equity $8,100,000 The approximate Debt to Capitalization is: A Approximate Debt to Capitalization = 55.56% ) Approximate Debt to Capitalization = 37.51% Approximate Debt to Capitalization = 64.29% D Approximate Debt to Capitalization = 35.71%
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