Why should I choose AnalystNotes?
Simply put: AnalystNotes offers the best value and the best product available to help you pass your exams.
Basic Question 5 of 6
True or False? The lower the debt to equity ratio, the riskier the situation.
User Contributed Comments 4
| User | Comment |
|---|---|
| johntan1979 | Is this implying that non-public companies are "high risk" investments, since they are 100% debt-financed? |
| Seancfa1 | You can have equity in a privately held firm. |
| ldfrench | Take a look at Lehman Brothers and Bear Stearns D/E in 2007-2008 |
| houstcarr | non-public companies definitely are not 100% debt financed |
I was very pleased with your notes and question bank. I especially like the mock exams because it helped to pull everything together.
Martin Rockenfeldt
Learning Outcome Statements
calculate and interpret activity, liquidity, solvency, and profitability ratios
describe relationships among ratios and evaluate a company using ratio analysis
CFA® 2025 Level I Curriculum, Volume 3, Module 11.