Which of the following ratios are used as an indicator of financial leverage (select all that...
Which of the following ratios are used as an indicator of financial leverage (select all that apply)?
A. ROA
B. Debt/EBITDA
C. EBIT/Interest
D. Debt/Capitalization
Homework Answers
Financial leverage = total debt / Total shareholder's equity
An indicator that measures the amount of debt in a company's capital structure is the debt-to-capitalization ratio, which measures a company's financial leverage ratio.
Debt / Capitalization
Option 'D' is correct
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