Multiple choice

Directions: State whether the following statement is True Or False.

Debt Equity Ratio is a 'Solvency Ratio.'

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The Debt-Equity Ratio measures the proportion of debt to equity in a company's capital structure. It is a fundamental solvency ratio used to assess a firm's long-term financial stability.

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