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

Financial leverage

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Operating Leverage

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Liquidity

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Profitability

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Solution

The correct option is A
Financial leverage

The debt-to-equity ratio is a measure of a firm's Financial leverage.

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Similar questions

Financial leverage is called favourable if

(a) Return on investment is lower than the cost of debt

(b) ROI is higher than the cost of debt

(d) If the degree of existing financial leverage is low

Financial leverage is called favourable if

(a) Return on investment is lower than the cost of debt

(b) Rol is higher than the cost of debt

(d) If the degree of existing financial leverage is low

Financial leverage is the amount of total debt in the capital. It is calculated as:

Financial leverage is a proportion of debt in an overall capital. State whether true or false.

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