The usefulness of the debt-to-equity ratio is that it allows interested parties to assess all of the following except?

Question

Quizplus · Accepted Answer

The debt-to-equity ratio does not provide any information about the number of shares issued by the company. Instead, it focuses on the relationship between the company's debt and equity in terms of how assets are financed and the level of risk associated with debt financing. It might suggest whether the company should adopt more debt financing, but not in terms of how many shares it has issued.

The Usefulness of the Debt-To-Equity Ratio Is That It Allows