Series 7 - General Securities Representative Exam

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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