A firm's ________ ratio is the fraction of the firm's total value that corresponds to debt.

Question

Quizplus · Accepted Answer

The debt-to-value ratio measures the amount of debt relative to the total value of the firm. It is calculated by dividing the total debt by the total value of the firm. The debt-to-equity ratio measures the amount of debt relative to equity, while the asset ratio measures the amount of debt relative to assets. Liability is a broad term that includes all the financial obligations owed by the firm, but it does not provide a specific measure of the firm's debt structure.

A Firm's ________ Ratio Is the Fraction of the Firm's