Final answer:
The Debt to Enterprise Value ratio is most closely related to the Debt to Capital ratio
Step-by-step explanation:
The Debt to Enterprise Value ratio is most closely related to The Debt to Capital ratio.
Both ratios measure the level of debt a company has in relation to its overall value. The Debt to Enterprise Value ratio calculates the proportion of a company's total debt to its overall enterprise value, which includes both debt and equity. Similarly, the Debt to Capital ratio measures the amount of debt relative to the company's total capital, which includes both debt and equity.
For example, if a company has $50 million in debt and an enterprise value of $200 million, the Debt to Enterprise Value ratio would be 0.25 or 25%. This means that 25% of the company's overall value is made up of debt. Similarly, the Debt to Capital ratio would also be 25%, as it compares the company's debt against its total capital.