1.Question 1If a firm has a debt-to-equity ratio of 20%, then a firmborrows $1 for every $____ in equity.
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Solution 1
The debt-to-equity ratio is calculated by dividing a company's total liabilities by its shareholder equity. In this case, the firm has a debt-to-equity ratio of 20%. This means that for every $1 in equity, the firm borrows $0.20. Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem. Knowee AI StudyGPT is a powerful AI-powered study tool designe
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Similar Questions
1.Question 1If a firm has a debt-to-equity ratio of 20%, then a firmborrows $1 for every $____ in equity.
Question 2If a firm has a debt to equity ratio of 50%, its overall debt ratio must be:1 point33%50%67%100%150%
Question 8If a company has $30,000 debt and $60,000 equity, what is its debt to equity ratio?
Debt Equity Ratio is :a.Activity Ratiob.Solvency Ratiosc.Operating Ratiod.Liquidity Ratio
The debt-to-equity ratio is a measure of a company's:a.Profitabilityb.Liquidityc.Solvencyd.Efficiency