Answer:
D. 2/3
Explanation:
The Debt to total value ratio is found by dividing the total debt by total equity plus total debt. It is written as
D/(D+E)
In this question we are already given the debt to equity ratio which is 2, this means that the debt is twice the amount of equity. We can use this ratio to find the debt to total value ratio. If we take debt as 2, then equity will be half its amount which is 1. So now we can calculate the Debt to total Value ratio.
D=2
D+E= 3
Debt to total value ration = 2/3
