Match the correct value driver category from the list below labeled a through c with each ratio that appears in items
-Debt/equity ratio
A) Sales and expense management
B) Working capital management
C) Capital structure management

Question

Quizplus · Accepted Answer

The Debt/Equity ratio is a measure of a company's financial leverage calculated by dividing its total liabilities by stockholders' equity. It reflects the ability of shareholder equity to cover all outstanding debts in the event of a business downturn, thus it falls under capital structure management.

Match the Correct Value Driver Category from the List Below