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      Question

      Debt equity ratio

      is:
      A Deferred liabilities/Net worth Correct Answer Incorrect Answer
      B Net worth/Different liabilities Correct Answer Incorrect Answer
      C Net worth/Total assets Correct Answer Incorrect Answer
      D Total assets/Net worth Correct Answer Incorrect Answer

      Solution

      The debt equity ratio is used to assess financial leverage and is calculated by dividing deferred liabilities by net worth.

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