The debt-to-equity ratio: a. is calculated by dividing book value of secured liabilities by book value of pledged assets. b. is a means of assessing the risk of a company's financing structure. c. is not relevant to secured creditors. d. can always be calculated from information provided in a company's income statement. e. must be calculated from the market values of assets and liabilities.

The debt-to-equity ratio is a means of assessing the risk of a company's financing structure.

The correct answer is B            

Explanation:

The division of book value of secured liabilities by book value of pledged assets is referred to as debt ratio.

Debt-equity ratio is calculated by dividing the book value of debt by book value of total stockholders equity. It measures the extent to which a firm is exposed to financial risk.

Debt-to-equity ratio is relevant to secured creditors because it shows the ability of a firm in repaying its debt obligations.  

Debt-to-equity ratio cannot be calculated from the information provided in a company's income statement.  

Debt-to-equity ratio is not calculated from the market values of assets                        and liabilities.                

i'ts proportional. if the inflation rate is 12% for example, the cpi will be 12% less.

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