The ﬁnancial ratio measured as the ﬁrm's long-term debt divided by its total capitalization is:
A) The interval measure.
B) The equity multiplier.
C) The total debt ratio.
D) The long-term debt ratio.
E) The debt-equity ratio.

Question

Quizplus · Accepted Answer

The long-term debt ratio is calculated by dividing a firm's long-term debt by its total capitalization, which includes long-term debt and equity.

The ﬁNancial Ratio Measured as the ﬁRm's Long-Term Debt Divided