Key figures for Best Buy and RadioShack follow. Required 1. Compute the debt-to-equity ratio for Best Buy
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Required
1. Compute the debt-to-equity ratio for Best Buy and RadioShack for both the current year and the prior year.
2. Use the ratio you computed in part 1 to determine which companys financing structure is less risky. Assume an industry average of 1.07 for debt-to-equity.
Transcribed Image Text:
Best Buy RadioShack Current Year Prior Year Current Year Prior Year (S millions) Total Assets Total Liabilities. Total Equity .$15,826 11,183 4,643 $12,758 8,274 4.484 $%2,283.5 1466.2 $1,989.6 1,219.9 817.3 769.7
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