Question

Debt-to-equity ratio is:

A. calculated by dividing total liabilities by net worth.

B. calculated by dividing monthly debt payments by net monthly income.

C. determined by dividing your assets by liabilities.

D. rarely used by creditors in determining credit worthiness.


My choice is B. Is it right?

Answer 1

None of those answers is correct.

http://www.investopedia.com/terms/d/debtequityratio.asp#axzz27c7KFf6q

http://www.investinganswers.com/financial-dictionary/ratio-analysis/debt-equity-ratio-358

http://financial-dictionary.thefreedictionary.com/Debt-to-Equity+Ratio