Question
The debt-to-equity ratio compares a companys total debt to shareholders equity. If a companys shareholders equity is $25,000,000 and total debt is $75,000,000 then which
The debt-to-equity ratio compares a companys total debt to shareholders equity. If a companys shareholders equity is $25,000,000 and total debt is $75,000,000 then which of the following statements is true:
The company owners are investing in the company at three times the rate the company is taking on debt.
The company is taking on debt at one-third the rate that its owners are investing in the company.
The company is taking on debt at twice the rate that its owners are investing in the company.
The company is taking on debt at three times the rate that its owners are investing in the company.
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