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What Does the Debt-To-Owners'-Equity Ratio Tell Us

Question 117

Multiple Choice

What does the debt-to-owners'-equity ratio tell us?


A) The extent to which the firm is financed through borrowed money
B) How much net income the business earns for each dollar invested
C) How readily the firm can meet unexpected demands for cash
D) The percentage of revenue that will be profit
E) The percentage of profits paid out to debt holders

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