What does Debt-Equity Ratio help to study?
1 Profitability
2 Solvency
3 Liquidity position
4 None of the above
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Answer:
The answer is 4 None of the above because
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Explanation:
The debt-to-equity (D/E) ratio is used to evaluate a company's financial leverage and is calculated by dividing a company's total liabilities by its shareholder equity. ... It is a measure of the degree to which a company is financing its operations through debt versus wholly owned funds.
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