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The debt-to-equity ratio: Is calculated by dividing book value of secured liabilities by book value of pledged assets. Is a means of assessing the risk
The debt-to-equity ratio:
Is calculated by dividing book value of secured liabilities by book value of pledged assets.
Is a means of assessing the risk of a company's financing structure.
Is not relevant to secured creditors.
Can always be calculated from information provided in a company's income statement.
Must be calculated from the market values of assets and liabilities.
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