These two ratios could not be the same because the assets and equity of a company will be different from each other (except in the unusual situation in which the company has no debt). The debt-to-equity ratio will be higher than the debt-to-assets ratio. See the correct answer for a complete explanation. Because the asset balance of a company is higher than its equity, a debt-to-equity ratio will be higher than a debt-to-asset ratio. This is because when equity is used in the denominator, the denominator will be smaller than when assets are used in the denominator. We know that the assets of the company must be higher than the equity of the company because of the accounting equation of assets = liabilities + equity. The debt-to-equity ratio will be higher than the debt-to-assets ratio. See the correct answer for a complete explanation.
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