What is the “rule of thumb” for the-debt-to-total-assets ratio, and what does it mean?

a) The debt-to-equity ratio is 45%, which is a satisfactory debt-to-equity ratio.

b) The debt-to-total-assets ratio is 65%, and creditors may not provide more debt financing to the company.

c) The debt-to-total assets ratio is 50%, and creditors will provide more debt financing.

d) The debt-to-total-debt ratio is 50%, and creditors may be reluctant to provide more financing.

Answer rating: 100% (QA)

b The debttototalassets ratio is 65 and creditors may not provide more debt financing to the c... View the full answer