The debt-to-equity ratio:

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


Answer: D

Business

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