What Kind of Information Does a Company's Debt Ratio Provide

Multiple Choice

What kind of information does a company's debt ratio provide?

A) What proportion of the company's debts are long-term liabilities
B) What proportion of the company's assets are financed by debt, as opposed to equity
C) How well a company is positioned to pay off all of its long-term debt
D) How much profit is generated by each share of stock