n NISM Certifications
XXI NISM Series XXI-A
Medium

The 'Debt-Equity Ratio' indicates:

Practice question from NISM XXI A for PMS - Mock Test 5 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. The proportion of debt used to finance assets relative to shareholders’ equity

    Correct answer

  2. B

    The company's ability to pay dividends

  3. C

    The company's profitability

  4. D

    The company's liquidity position

Why this is the answer

It measures financial leverage and risk.

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