Explain how the debt/equity ratio indicates the same relative long-term debt-paying ability as does the debt ratio,
Question:
Explain how the debt/equity ratio indicates the same relative long-term debt-paying ability as does the debt ratio, only in a different form.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 90% (10 reviews)
The balance sheet equation has assets liabilities shareholders equity Given any ...View the full answer
Answered By
Utsab mitra
I have the expertise to deliver these subjects to college and higher-level students. The services would involve only solving assignments, homework help, and others.
I have experience in delivering these subjects for the last 6 years on a freelancing basis in different companies around the globe. I am CMA certified and CGMA UK. I have professional experience of 18 years in the industry involved in the manufacturing company and IT implementation experience of over 12 years.
I have delivered this help to students effortlessly, which is essential to give the students a good grade in their studies.
3.50+
2+ Reviews
10+ Question Solved
Related Book For
Financial Reporting and Analysis Using Financial Accounting Information
ISBN: 978-1439080603
12th Edition
Authors: Charles H Gibson
Question Posted:
Students also viewed these Accounting questions
-
1. Explain how the debt mechanism can be a leverage in the company? 2. Explain about Multi-National Companies? 3. Explain the risks faced by Multi-National Companies and how to overcome them? 4....
-
A firm has a debt-to-equity ratio of 0.5. Its cost of equity is 22%, and its cost of debt is 16%. If the corporate tax rate is 0.40, what would its cost of equity be if the debt-to-equity ratio were...
-
A firm has a debt to equity ratio of 40%, debt of $250,000, and net income of $100,000. The return on equity is?
-
Exhibits 7.17 and 7.18 provide footnote excerpts to the financial reports of The Coca-Cola Company and Eli Lilly and Company that discuss the stock option grants given to the employees of the two...
-
Use Visible Analyst or the Repository Web page to view the COMPUTER MASTER data store. Jump to the data structure and browse the elements and structural records.
-
Kuepper's Day Care is a large day-care center in South Orange, New Jersey. The day-care center serves several nearby businesses, as well as a number of individual families. The businesses pay $6,180...
-
For each of the following, calculate the \(t\)-test for independent means. a. X 13.49,X 23.14, sX-1-X-2 = .31 b. X 113.27, X 2 = 16.45, sX 1-X 2 = 1.52 c. X 1.76, X 2.91, sX 1-X 2 = .09 d. X 11.52, X...
-
Hardy Companys cost of goods sold is consistently 60% of sales. The company plans to carry ending merchandise inventory for each month equal to 20% of the next months budgeted cost of good sold. All...
-
When an object is dropped, the distance it falls in t seconds, assuming that air resistance is negligible, is given by s(t) = 4.905t where s(t) is in meters (m). If a stone is dropped from a cliff,...
-
All the following case study questions are based on this book: Project management achieving competitive advantage by Jeffrey K. Pinto Question 8.1 1. Given the history of large cost overruns...
-
For a given firm, would you expect the debt ratio to be as high as the debt/equity ratio? Explain.
-
Why is it important to compare long-term debt ratios of a given firm with industry averages?
-
Suppose you added N 2 rather than SO 3 to the vessel in Practice Problem 14.11. Which way would the reaction shift? Data from Problem 14.11 If you added SO 3 to a vessel in which the reaction 2SO 2 +...
-
How is a customer-oriented firm different from a production- oriented firm or a sales-oriented firm?
-
Suppose that you have decided to quit your job as an insurance adjuster and open a bakery. Your business is now growing, and you have decided to add a full line of catering services. This means more...
-
Honda Motor Company, a Japan-based multinational and the worlds largest motorcycle manufacturer, was founded by Soichiro Honda in 1937. Honda, a Japanese engineer and innovator, built Honda Motor...
-
What factors affect ethical behavior and choices? How can businesses use this knowledge to further ethical behavior in their organizations?
-
Why are companies so interested in relationship marketing?
-
What is a social media marketing tactical plan and how does it support the execution of a social media marketing strategy?
-
In a large midwestern university, 30% of the students live in apartments. If 200 students are randomly selected, find the probability that the number of them living in apartments will be between 55...
-
The European Union promotes the benefits of the euro as a common currency for the 19 EU nations that have adopted it (see http://ec.europa.eu/economy_finance/euro/index _en.htm). What are possible...
-
The 2007 Eastman Kodak Annual Report and Form 10-K can be found at the following Web site: www.prenhall.com/fraser. (a) Using the checklist and the quality of financial reporting sections of Chapter...
-
The chapter discusses the objectives of investor-oriented markets: investor protection and market quality. Transparent financial reporting is important for achieving these objectives. What is...
-
Why are multinational corporations increasingly being held accountable to constituencies other than traditional investor groups?
-
The market price of a semi-annual pay bond is $957.95. It has 15.00 years to maturity and a coupon rate of 7.00%. Par value is $1,000. What is the yield to maturity? The market price of a semi-annual...
-
Compute the accumulated sum of the following payments: (a) $400 every six months for 4 years at 8% compounded semi-annually (b) $250 per month for 5 years at 7.5% compounded monthly.
-
Click "Run program". The output is wrong. Sometimes a program lacking input will produce wrong output (as in this case), or no output. Remember to always pre-enter needed input. Type 2 in the input...
Study smarter with the SolutionInn App