Accountancy, asked by surajkumar3261, 1 year ago

What is financial leverage ratio of a firm if debt equity ratio and debt ratio is given

Answers

Answered by Anonymous
9

every dollar in equity, the firm has 46 cents in leverage.

A ratio of 1 indicates that creditors and investors are balanced with respect to the company's assets.

The D/E ratio is considered a key financial metric because it indicates potential financial risk.

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