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    Question

    Which of the following ratios measures the proportion of

    debt to total capital employed?
    A Current ratio Correct Answer Incorrect Answer
    B Debt-to-equity ratio Correct Answer Incorrect Answer
    C Debt-to-capitalisation ratio (Debt / (Debt + Equity)) Correct Answer Incorrect Answer
    D Interest coverage ratio Correct Answer Incorrect Answer

    Solution

    The Debt-to-Capitalization ratio measures the proportion of a company's total capital that is financed by debt.

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