Refer to the Nabisco Company information in Exercises 13 6 and 13 8 Compare the companys long term risk and capital structure positions at the end of 2010 and 2009 by computing these ratios (1) Debt and equity ratios, (2) Debt to equity ratio, and (3) Times interest earned Comment on these ratio re...

1 Debt and equity ratios 2010 2009 Total liabilities and debt ratio 157577 116618 27419 ...

Refer to the Nabisco Company information in Exercises 13-6 and 13-8. Compare the companys long term risk

Question:

Refer to the Nabisco Company information in Exercises 13-6 and 13-8. Compare the company’s long term risk and positions at the end of 2010 and 2009 by computing these ratios:
(1) Debt and equity ratios,
(2) Debt-to-equity ratio, and
(3) Times interest earned. Comment on these ratio results.

Capital Structure
Capital structure refers to a company’s outstanding debt and equity. The capital structure is the particular combination of debt and equity used by a finance its overall operations and growth. Capital structure maximizes the market value of a...