Question: $ millions Total assets Total liabilities Total equity Apple Current Year Prior Year $321,686 $290, 345 193,437 170,990 128,249 119,355 Google Current Year Prior Year
$ millions Total assets Total liabilities Total equity Apple Current Year Prior Year $321,686 $290, 345 193,437 170,990 128,249 119,355 Google Current Year Prior Year $167, 497 $147, 461 28, 461 27,130 139,036 120,331 Required: 1. Compute the debt-to-equity ratios for Apple and Google for both the current year and the prior year. 2. Use the ratios we computed in part 1 to determine which company's financing structure is least risky. 3. Is its debt-to-equity ratio more risky or less risky compared to the industry (assumed) average of 0.5 for (a) Apple and (b) Google
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
