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    Financial Accounting Study Set 8
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    Exam 13: Financial Statement Analysis
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    How Is the Leverage Ratio Calculated
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How Is the Leverage Ratio Calculated

Question 1

Question 1

Multiple Choice

How is the leverage ratio calculated?


A) Total debt divided by total assets.
B) Total assets divided by total debt.
C) Average total assets divided by average common stockholders' equity.
D) Average total debt divided by average total assets.

Correct Answer:

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