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The debt to tangible net worth ratio is calculated as follows:

(Equity - Intangible Assets) / Interest Bearing Liabilities
Interest Bearing Liabilities / Equity
Interest Bearing Liabilities / (Equity - Intangible Assets)
Equity / Interest Bearing Liabilities

Sagot :

chilljain33

The debt to tangible net worth ratio is calculated as Interest Bearing Liabilities divided by the total of Equity less the Intangible Assets.

What is Tangible Net Worth?

A net worth of an individual or an organization, which does not involve or take into consideration the intangible assets held by such individual or organization is known as the tangible net worth.

Hence, option C holds true regarding the formula of debt to tangible net worth ratio.

Learn more about the Tangible Net Worth here:

https://brainly.com/question/4513714

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