Which of the following are true about the Debt-to-Equity Ratio?
1. It calculates the proportion of total debt relative to shareholders’ equity.
2. A higher debt-to-equity ratio indicates a less risky business.
3. It evaluates how a company finances its operations through debt and equity.
1
1 and 2 only
2
2 and 3 only
3
1 and 3 only
4
All of the above
5
None of the above