Asked by Hafsa Shahzada on May 14, 2024
Verified
The ratio that indicates the amount of assets that are financed by creditors is:
A) debt to stockholders' equity.
B) debt to total retained earnings ratio.
C) debts to total assets ratio.
D) None of the above
Debts to Total Assets Ratio
A financial metric indicating the proportion of a company's assets that are financed through debt, assessing financial leverage.
Debt to Stockholders' Equity
A financial ratio that measures the proportion of a company's debt to the equity held by its shareholders.
Debt to Total Retained Earnings Ratio
A financial measure used to evaluate the proportion of a company's debt compared to its retained earnings.
- Understand and calculate various financial ratios related to debt management.
Verified Answer
Learning Objectives
- Understand and calculate various financial ratios related to debt management.
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