Practice question · Estimate
A firm has total equity 300 and total liabilities 600. Estimate the debt-to-equity ratio.
Estimate on a scale from 0 to 5.
Hints
- D/E = liabilities / equity.
- .
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2 (answers within ±0.2 count)
Why
. For every euro of owners' money, two euros of creditor money, a leveraged structure that amplifies both gains and risks.
Practise Liabilities and Equity
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