Question

You are provided with the following information from the December 31, 2016 to 2018 balance sheets of Peguis Inc.:



Required:
a. Calculate the debt-to-equity ratio for each year.
b. Describe how the ratio has changed over the three years.
c. Interpret why the change in the ratio took place. What changes in the accounts caused the ratio to change as it did?
d. Explain what the change in the ratio means to Peguis’shareholders.


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  • CreatedFebruary 26, 2015
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