The debt-to-equity ratio is used to measure a company's

The debt-to-equity ratio is used to measure

Multiple choice — select the best answer

AMarket value
BLiquidity
CProfitability
DSolvency

✓ Correct answer: D. Solvency The debt-to-equity ratio compares total liabilities to stockholders' equity, measuring the degree of financial leverage and long-term solvency of the company.

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