Discussion
The debt to equity ratio measures
Answer: B
Correct answer: how far the firm is financed by borrowing
Debt to equity is the gearing measure, comparing what has been borrowed with what the owners have put in. High gearing magnifies the return to the owners when things go well and magnifies the loss when they do not, and it is the fixed interest obligation that makes the difference dangerous.
No comment is present. Be the first to comment.
Loading…
Post your comment
Please log in or register to post a comment.
Examination Categories
- SSC Exams
- Banking Exams
- Teaching Exams
- Civil Services Exams
- Railways Exams
- Engineering Recruitment Exams
- Defence Exams
- State Government Exams
- Police Exams
- Insurance Exams
- Nursing Exams
- Other Government Exams
- NRA CET
- PG Entrance Exams
- Campus Placement
- MBA Entrance Exams
- CUET and UG Entrance
- Judiciary Exams
- Regulatory Body Exams
- Software Development