Question

A firm's debt-to-total assets (D/TA) ratio is 0.4. What is its debt-to-equity (D/E) ratio?
Options
O 0.2
O 0.6
0.667
O 0.333​

Answer 1

Answer:

The formula debt to Equity is Debt/Equity & we have given debt to total Assets as 0.2. We can consider Total Assets as Debt+Equity. Now debt + Equity=1, substituting debt=0.2 we get Equity=0.8.

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Debt to total

Explanation:

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Answer 2

Answer:

$answer$

$0.333$