A firm reporting a debt-to-equity ratio of 0.69 is most

A 0.69 ratio means the firm has 0.69 debt for every 1 of equity, indicating a moderate level of leveragenot too risky, not overly conservative.

accurately described by which of the following statements regarding its leverage position?

A Highly leveraged Correct Answer Incorrect Answer

B Moderately leveraged Correct Answer Incorrect Answer

C Minimally or conservatively leveraged Correct Answer Incorrect Answer

D Debt-free or zero leverage Correct Answer Incorrect Answer

E Critically leveraged and risky Correct Answer Incorrect Answer

Solution

A 0.69 ratio means the firm has ₹0.69 debt for every ₹1 of equity, indicating a moderate level of leverage—not too risky, not overly conservative.

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