(a) Compute the “debt to equity” ratio for each of the five URL companies. The ratio measures how much of the company is financed by debt and equity It is computed by dividing the total liabilities by the total stockholders’ equity, as shown in the balance sheet. . The ratio is very important to creditors (bankers). The lower the debt to equity ratio, the more favorable it is for a company and it raises the probability of borrowing money. When the ratio approaches .50, the lower the probability of borrowing money.

(b) Rank the five companies according to their ability to borrow money.

The five corporation URLs:

1- Starbuck’s

http://s21.q4cdn.com/369030626/files/doc_financials/2016/Annual/FY16-Annual-Report-on-Form-10-K.pdf

2- Boeing Corporation

http://s2.q4cdn.com/661678649/files/doc_financials/annual/2016/2016-Annual-Report.pdf

3- Walmart Corporation

http://s2.q4cdn.com/056532643/files/doc_financials/2016/annual/2016-Annual-Report-PDF.pdf

4- Wells Fargo Bank

https://www08.wellsfargomedia.com/assets/pdf/about/investor-relations/annual-reports/2016-annual-report.pdf

5- Microsoft Corporation

http://www.microsoft.com/investor/reports/ar16/index.html

Answer rating: 100% (QA)

Company Starbucks Boeing Walmart Wells Fargo Microsoft ... View the full answer