1. The debt to assets ratio is one of the analysis tools used to evaluate the impact ofdebt holding on companies. Explain the importance of this ratio and how could it beused to assess companies.2. "Companies should have freedom to pay as much dividends they want toshareholders because the company and its money effectively belong to theshareholders" Do you agree/disagree with this statement. Explain why.JARE

Answered: 1. The debt to assets ratio is one of…

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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

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.
2. "Companies should have freedom to pay as much dividends they want to
shareholders because the company and its money effectively belong to the
shareholders" Do you agree/disagree with this statement. Explain why.
JARE

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