A firm's ________ ratio is the fraction of the firm's total value that corresponds to debt.

Question

Quizplus · Accepted Answer

The ratio that corresponds to the fraction of the firm's total value that corresponds to debt is the debt-to-value ratio. This measures the proportion of a company's total capitalization that is represented by debt. The other options listed are also financial ratios, but they do not provide this specific information. The debt-to-equity ratio compares a company's debt to its equity, the asset ratio compares a company's assets to its liabilities, and the liability ratio is not a common financial ratio.

A Firm's ________ Ratio Is the Fraction of the Firm's