1. The debt to assets ratio is one of the analysis tools used to evaluate the impact of debt holding on companies. Explain the importance of this ratio and how could it be used to assess companies.

Q: The debt to assets ratio is one of the analysis tools used to evaluate the impact of debt holding on…

A: 1) DEBT TO ASSETS RATIO It is a leverage ratio. This is used to calculate the total amount of…

Q: increasing the company's debts on Return on Assets (ROA) and Return on Equity (ROE

A: Debt is the liability incurred by the company by borrowing for its financial needs.

Q: Describe the Ratios that show how a firm uses debt financing?

A: Debt to Asset ratio It is a ratio that helps in measuring the company’s assets financed through the…

Q: What are the sign that a company debt is high?

A: The objective of the question is to identify the signs that indicate a company's high level of debt.…

Q: In evaluating the cost of debt where a company has several issues       outstanding should the…

A: No, while calculating the cost of borrowing when companies have several obligations outstanding we…

Q: in business practise, what are the main factors that will impact on the target debt ratio of a firm?

A: The company's capital stracture is the driver of the debt to equity ratio.The more debt of a company…

Q: Why does a Chief Financial Officer need to know their company's cost of equity?

A: A chief financial officer is one of the  top-level executive. The CFO is a financial controller who…

Q: Outline three methods for estimating company’s cost of debt (not including the Expected Yield) and…

A: Debt is a prominent component of capital , cost of debt is always

Q: 1. Definitions (S9.1-S9.3) Define the following terms: a. Cost of debt. b. Cost of equity. c.…

A: The company raises money through debt and equity and these are sources for long term finance for…

Q: Explain the advantages and disadvantages of the use of debt to a company

A: Debt - Debt is a source of fund to a company on which company pay an annual fixed payment. and that…

Q: What are the Limitations of Financial Ratios in Business Decisions?

A: Limitations of Financial Ratios in Business Decisions are as follows: Firms operating in various…

Q: Please explain one advantage and one disadvantage of financing a company with debt.   Advantage…

A: Advantage: Tax BenefitsOne significant advantage of financing a company with debt is the potential…

Q: Describe the strenghts and weaknesses of companies dding debt in their capital structure.

A: Debt is a financial instrument which is used by the companies to fund their business. Companies…

Q: Which of the following is a cost associated with an IPO? Interest expenses Out-of-pocket expenses…

A: Company means the form of business where management is separately from owner and have perpetual…

Q: Indicate whether the following statement is true or false. Provide the relevant explanations.  The…

A: The cost of capital is the rate of return that investors require to invest in a company's…

Q: What does issuing equity instea of debt signal about the financial health of a company?

A: Debt signaling is a theory which helps in determining the movement of stock prices. When a company…

Q: 7.) Describe the debt and equity markets? How do organizations obtain financing from each market?…

A: Debt is considered riskless, however equity securities have some inherent risk.

Q: How might one establish norms (or target values)for the financial ratios of a company that is…

A: The question is based on the concept of ratio analysis used as financial analysis for a company. The…

Q: dont provide AI solution otherwise i give dislike .......plesa note be carefully    What is the…

A: The debt-to-equity ratio is a financial ratio indicating the relative proportion of shareholders'…

Q: Explain the concepts of USEFULNESS and LIMITATIONS of the corporate balance sheets

A: Balance sheet: Balance Sheet is one of the financial statements that summarize the assets, the…

Q: a company is more likely to be considered solvent if it has a ____ debt-equity ratio and a _____…

A: A lower debt-equity ratio indicates that a firm has a low value of debt in comparison to its equity.…

Q: 1. The leverage ratio is the proportion of debts that a bank has compared to its equity/capital.…

A: The question is related to the Ratio Analysis. Ratio is the indicated quotient of two mathematical…