The Debt Ratio Is Used To

Multiple Choice

The debt ratio is used to:

A) Is used only by banks when a business applies for a loan.
B) Describe the risk associated with a company's debts and is used only by banks when a business applies for a loan.
C) Measure the relationship of equity to debt.
D) Describe the risk associated with a company's debts.
E) Measure the relationship of equity to debt and describe the risk associated with a company's debts.