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    Question

    Debt equity ratio

    is:
    A Deferred liabilities/Net worth Correct Answer Incorrect Answer
    B Net worth/Different liabilities Correct Answer Incorrect Answer
    C Net worth/Total assets Correct Answer Incorrect Answer
    D Total assets/Net worth Correct Answer Incorrect Answer

    Solution

    The debt equity ratio is used to assess financial leverage and is calculated by dividing deferred liabilities by net worth.

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