A company's total liabilities divided by its total shareholders' equity is called the:
A) Equity ratio.
B) Return on total assets ratio.
C) Pledged assets to secured liabilities ratio.
D) Debt-to-equity ratio.
E) Times secured liabilities earned ratio.

Question

Quizplus · Accepted Answer

The definition given in the question matches the formula for the debt-to-equity ratio, which is calculated by dividing total liabilities by total shareholders' equity. Therefore, the correct answer is D.

A Company's Total Liabilities Divided by Its Total Shareholders' Equity