A common leverage ratio is for a company to have at least ________ times the amount of equity as it has debt.
A) two
B) three
C) four
D) five
E) ten

Name: A common leverage ratio is for a company to have at least ________ times the amount of equity as it has debt. A) two B) three C) four D) five E) ten
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Question

Quizplus · Accepted Answer

A common leverage ratio that is considered healthy for a company is to have at least two times the amount of equity as it has debt. This indicates a strong balance sheet and financial stability.

A Common Leverage Ratio Is for a Company to Have