Series 7 - General Securities Representative Exam
Preview Mode
A company's debt to equity ratio is 2.04. This D/E is
High. A company's D/E ratio should not exceed 1.99
A
Low. A company's D/E should be upwards of 5.00
B
Extremely high and could result in a delisting from an exchange
C
Needed to be compared to industry peers for relativity
D
Explanations
D/E ratios need to be compared with other companies in a sector to determine whether it is high or low