The debt-equity ratio is measured as total:
A) Equity minus total debt.
B) Equity divided by total debt.
C) Debt divided by total equity.
D) Debt plus total equity.
E) Debt minus total assets, divided by total equity.

Question

Quizplus · Accepted Answer

The debt-equity ratio is calculated as total debt divided by total equity, which measures the proportion of a company's funding that comes from creditors and investors.

The Debt-Equity Ratio Is Measured as Total