Question

Levine, Inc., has a total debt ratio of 0.48. What is its debt-equity ratio?

Answer 1

Answer:Debt equity ratio= 0.92

Explanation:

Debt equity ratio is a company's  liquidity ratio that compares its total debt to total equity showing how  the proportion  of the  finance of the company proceeds from its  creditors and investors.

its formulae is given by

Debt equity ratio= Total liabilities /Total shareholder's equity

 = Debt/ total asset - debt

let the total asset = 100% = 1

Therefore,

Debt equity ratio=Debt/ total asset - debt

= 0.48/ 1 -0.48 = 0.48 /0.52 = 0.9231