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If debt to capital employed ratio is 0.25 : 1, what is the proprietary ratio?
A0.25 : 1
B0.50 : 1
C0.75 : 1
D1.25 : 1
Answer & Solution
Correct answer: C. 0.75 : 1
The two ratios on the same base add up to 1, so 1 minus 0.25 leaves 0.75.
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