Debt-Equity ratio is also known as _____________.

Acid test ratio

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Quick ratio

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External-internal equity ratio

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Proprietory ratio

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Solution

The correct option is A External-internal equity ratio
Debt-equity ratio indicates that how much debt a company is using to finance its assets relative to the value of shareholder's equity.
The formula for calculating debt-equity Ratio is :-
Total liabilities / share holder's equity. It is also referred to as external-internal equity ratio or gearing ratio.

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Similar questions

The debt-to-equity ratio is a measure of a firm's ___

A lower value of debt to equity ratio represents:

Debt-equity ratio is a sub-part of _______.

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

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