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    Question

    The Debt-Equity Ratio is a measure of a

    company's:
    A Profitability Correct Answer Incorrect Answer
    B Liquidity Correct Answer Incorrect Answer
    C Solvency Correct Answer Incorrect Answer
    D Efficiency Correct Answer Incorrect Answer

    Solution

    The Debt-Equity Ratio indicates the proportion of debt financing relative to equity financing. It is a long-term solvency ratio that measures the ability of a firm to meet its long-term obligations.

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