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

Question

Quizplus · Accepted Answer

The debt-equity ratio is measured as the total debt divided by total equity. This gives an indication of how much of a company's financing comes from debt versus equity.

The Debt-Equity Ratio Is Measured as Total