How Is the Debt-To-Owners'-Equity Ratio Used

Multiple Choice

How is the debt-to-owners'-equity ratio used?

A) To describe the extent to which the firm is financed through borrowed money
B) To determine how much net income the business earns for each dollar invested
C) To determine how readily the firm can meet unexpected demands for cash
D) To indicate the percentage of revenue which will be profit
E) To determine the percentage of profits paid out to debtholders