Multiple Choice
Which of the following statements regarding the debt-to-equity ratio is correct?
A) A high ratio means that the company is primarily financed through stockholder investments.
B) A higher ratio is preferred.
C) The debt-to-equity ratio is a measure of a company's ability to pay its debt.
D) The debt-to-equity ratio is a measure of investor and creditor risk.
Correct Answer:
Verified
Correct Answer:
Verified
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