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Sagot :
It should be noted that when a company divides its total debt by its total equity, it's measuring its A. leverage.
What is a leverage?
It should be noted that the debt to equity ratio simply compares liability to the equity.
When dividing its total debt by its total equity, the company try to measure its leverage. This is important in order to know the financial standing of the firm.
Learn more about equity on:
https://brainly.com/question/1957305
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