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what question can i ask in reference to The Debt-to-Equity (D/E) ratio is a key metric in corporate finance, used to evaluate a company's financial
what question can i ask in reference to The Debt-to-Equity (D/E) ratio is a key metric in corporate finance, used to evaluate a company's financial leverage. It's calculated by dividing a company's total liabilities by its shareholder equity. This ratio indicates the degree to which a company is financing its operations through debt versus its own resources. A high D/E ratio might suggest aggressive growth financing with debt, leading to volatile earnings due to additional interest expense. Conversely, a low D/E ratio might indicate underutilization of the profit-boosting potential of financial leverage
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