Measure its financial leverage
Does not affect the Earnings per share
Affects the dividend decision of the company
None of the above.
✅ The correct answer is A.
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.
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.