Solved

What Is the "Rule of Thumb" for The-Debt-To-Total-Assets Ratio, and What

Question 62

Multiple Choice

What is the "rule of thumb" for the-debt-to-total-assets ratio, and what does it mean?


A) The debt-to-equity ratio is 45%, which is a satisfactory debt-to-equity ratio.
B) The debt-to-total-assets ratio is 65%, and creditors may not provide more debt financing to the company.
C) The debt-to-total assets ratio is 50%, and creditors will provide more debt financing.
D) The debt-to-total-debt ratio is 50%, and creditors may be reluctant to provide more financing.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents