Busıness Fınance I Deneme Sınavı Sorusu #854411

Debt ratio shows the percentage of assets that is financed by creditors, and thus is an indication of the level of financial leverage used by the company. How is debt ratio computed?


Total Liabilities / Debt to Equity

Total Assets / Debt to Equity

Total Liabilities / Total Assets

Total Liabilities / Shareholders' Equity

Total Assets / Shareholders' Equity


Yanıt Açıklaması:

Debt ratio shows the percentage of assets that is financed by creditors, and thus is an indication of the level of financial leverage used by the company. It is computes as follows :

Debt Ratio : Total Liabilities / Total Assets

The correct answer is C. 

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