Q102
The Debt-Equity ratio of a Company_______________.
A.
Measure its financial leverage
AnswerB.
Does not affect the Earnings per share
C.
Affects the dividend decision of the company
D.
None of the above.
Answer: Option A
Solution
Answer: Option A
Solution:
The Debt-Equity ratio of a Company measure its financial leverage. The debt-to-equity (D/E) ratio is calculated by dividing a company's total liabilities by its shareholder equity.