The debt-to-equity ratio:

A. Is a means of assessing the risk of a company's financing structure.
B. Can always be calculated from information provided in a company's income statement.
C. Must be calculated from the market values of assets and liabilities.
D. Is calculated by dividing book value of secured liabilities by book value of pledged assets.
E. Is not relevant to secured creditors.


Answer: A

Business

You might also like to view...

Critical applications should be identified and prioritized by the user departments, accountants, and auditors

Indicate whether the statement is true or false

Business

Arguments against using the net present value and internal rate of return methods include that

A) they require detailed long-term forecasts of the incremental benefits and costs. B) they fail to consider how the investment project is to be financed. C) they fail to use accounting profits. D) they fail to use the cash flow of the project.

Business

Tangshan Mining issued $1,000,000 of commercial paper for $992,500 for 45 days. Based on this information, the effective annual rate of interest on the commercial paper would be ________ (assume 360 days in a year)

A) 6.13% B) 6.20% C) 6.32% D) 6.08%

Business

Xron paid a dividend last year of $3.92 per share. If yesterday's closing price was $93.63, what is the current yield on the stock? (Round to the nearest tenth of a percent)

What will be an ideal response?

Business