what is a debt to equity ratio 
a debt to equity ratio is another way of looking at the risk that investing in a particular company may hold it compares a company s liabilities to the value of its shareholder equity the higher the debt to equity ratio the riskier a company is often considered to be 6the bottom lineweighted average cost of capital wacc is a useful measure for both investors and company executives however it can be difficult to compute with accuracy and usually should not be relied on all by itself 