A high debt-to-equity ratio indicates that a firm is "highly leveraged."

Question

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A high debt-to-equity ratio means that a company is using a significant amount of debt financing compared to equity financing, which suggests that the company is highly leveraged. A high debt-to-equity ratio may indicate that the company is at risk of defaulting on its debts or may have a higher cost of capital due to its greater reliance on debt financing.

A High Debt-To-Equity Ratio Indicates That a Firm Is "Highly