ECONOMICS

Detailed explanation-1: -The main difference between the debt-to-equity ratio and the debt-to-capital ratio is that the debt-to-equity ratio only includes debt in the numerator, while the debt-to-capital ratio includes both debt and equity in the numerator.

Detailed explanation-2: -The debt-to-equity ratio tells a company the amount of risk associated with the way its capital structure is set up and run. The ratio highlights the amount of debt a company is using to run their business and the financial leverage that is available to a company.

Detailed explanation-3: -Companies that use more debt than equity to finance their assets and fund operating activities have a high leverage ratio and an aggressive capital structure.

Detailed explanation-4: -The primary difference between Debt and Equity Financing is that debt financing is when the company raises the capital by selling the debt instruments to the investors. In contrast, equity financing is when the company raises capital by selling its shares to the public.