. A 0.50 (50%) debt-equity ratio would suggest that a firm has: a. 50% of its assets financed with debt b. 33-1/3% of it assets financed with debt c. an Equity Multiplier of 1.667 d. 66-23% of its assets financed with debt

Entrepreneurial Finance
6th Edition
ISBN:9781337635653
Author:Leach
Publisher:Leach
Chapter5: Evaluating Operating And Financial Performance
Section5.4: Leverage Ratios
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3. A 0.50 (50%) debt-equity ratio would suggest that a firm has:

a. 50% of its assets financed with debt

b. 33-1/3% of it assets financed with debt

c. an Equity Multiplier of 1.667

d. 66-23% of its assets financed with debt

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