Question : Which is the debt-to-equity ratio?
Option 1: Long Term Debts/Shareholder’s Funds
Option 2: Short Term Debts/Equity Capital
Option 3: Shareholder’s Funds/Total Assets
Option 4: Total Assets/Long-term Debts
Answer (1)
8th Jan, 2024
Correct Answer: Long Term Debts/Shareholder’s Funds
Solution :
A financial and liquidity ratio called the debt to equity ratio shows how much debt and equity a company employs.
Long-Term Debts/ Shareholder's Fund = Debt-Equity Ratio
Hence option 1 is the correct answer.
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