A ______ debt-to-equity ratio indicates a lower amount of financing by debt via lenders versus funding through equity via shareholders.

Lower

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Higher

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Average

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None of these

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Solution

The correct option is A
Lower

A lower debt-to-equity ratio indicates a lower amount of financing by debt via lenders versus funding through equity via shareholders.

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Similar questions

A company with a debt-to-equity ratio of 2.5:1 and Rs 15,00,000 of shareholders' funds has debt of ________

A lower value of debt to equity ratio represents:

Higher debt-equity ratio results in:

(a) Lower financial risk

(b) Higher degree of operating risk

(d) Higher EPS

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