Question: i) By using appropriate examples (with numerical equation), explain why if the Debt/Equity ratio increase, the Debt/Asset ratio also will increase. What do you learn

i) By using appropriate examples (with numerical equation), explain why if

i) By using appropriate examples (with numerical equation), explain why if the Debt/Equity ratio increase, the Debt/Asset ratio also will increase. What do you learn from this information? (2 marks) ii) Explain why a business with a higher Working Capital will not necessary have a higher Current ratio? (3 marks) iii) What did you learn from this information? (5 marks) END OF QUESTIONS

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