When only equity counts as capital, the leverage measure is
A)equal to the capital ratio.
B)equal to return on assets.
C)the inverse of return on assets.
D)assets divided by equity.

Name: When only equity counts as capital, the leverage measure is A)equal to the capital ratio. B)equal to return on assets. C)the inverse of return on assets. D)assets divided by equity.
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Question

Quizplus · Accepted Answer

Leverage is calculated as assets divided by equity when only equity is considered as capital.

When Only Equity Counts as Capital, the Leverage Measure Is