You are considering buying a bond from a company that has a Debt-to-Assets ratio of 0.65.This means that:
A)the company has 65% of its total assets in the current category.
B)the company has 35 cents of total assets financed by debt..
C)65% of the company's total assets were financed by debt.
D)shareholders currently own 65% of the company's assets.

Question

Quizplus · Accepted Answer

The Debt-to-Assets ratio represents the proportion of the company's total assets that are financed by debt. Therefore, if the ratio is 0.65, it means that 65% of the company's total assets were financed by debt.

You Are Considering Buying a Bond from a Company That