Series 79 practice questionmediumLeverage Ratios
A company has total debt of $200 million and total equity of $300 million. What is its debt-to-equity ratio?
- A0.67x✓ Correct answer
- B0.40x
- C1.50x
- D0.60x
Explanation
Why A — 0.67x
Debt-to-equity equals $200 million ÷ $300 million = approximately 0.67x.
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