The Debt-To-Equity Ratio

Multiple Choice

The debt-to-equity ratio:

A) Is not relevant to secured creditors.
B) Is calculated by dividing book value of secured liabilities by book value of pledged assets.
C) Can always be calculated from information provided in a company's income statement.
D) Must be calculated from the market values of assets and liabilities.
E) Is a means of assessing the risk of a company's financing structure.