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Debt-to-equity ratio is:

Question 11 options:

calculated by dividing total liabilities by net worth.

calculated by dividing monthly debt payments by net monthly income.

determined by dividing your assets by liabilities.

rarely used by creditors in determining credit worthiness.

User Simanas
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2 Answers

4 votes

Answer:

A

Step-by-step explanation:

i took the quiz

User Chavi
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4 votes

Answer: calculated by dividing total liabilities by net worth.

Step-by-step explanation:

The debt to equity ratio is used to know how credit worthy a company is. This is gotten by dividing the total liability of a company by the equity of the shareholder.

It should be noted that the debt t equity ratio isn't gotten dividing your assets by liabilities. Therefore, based on the information given above, the answer is A.

User Eric MORAND
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