a-company-has-a-debt-to-equity-ratio-of-12-what-does-this-indicate-about-the-com

Question

A company has a debt-to-equity ratio of 1.2. What does this indicate about the company's financial leverage?

Accepted Answer

The company is using more debt than equity to finance its assets.

Answer

The company is not using any financial leverage.

Answer

The company has no long-term debt.

Answer

The company is using more equity than debt to finance its assets.