A firm has a debt to equity ratio of 0.25. What is the firm's total debt ratio? (a) 0.33 (b) 1.50 (c) 0.50 (d) 0.2 (e) 5.00
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- Need help with this financial accounting questionHow do you determine the mix (percentages or weights) of debt vs equity from the Debt to Equity (D/E) Ratio? For example, if a company has a D/E Ratio = .667, what is the percentage of debt, of equity? For example, if a company has a D/E Ratio = 1, what is the percentage of debt, of equity? For example, if a company has a D/E Ratio = 1.5, what is the percentage of debt, of equity?A company has: Return on Asset 0.08 Cost of the debt 0.04. What is the Cost of Equity if the debt-equity ratio is 0.58
- A firm has a debt-to-equity ratio of 0.5 and a market-to-book ratio of 2. What is the ratio of the book value of debt to the market value of equity? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Book debt-to-market equity ratioA firm has a debt-to-equity ratio of 0.60 and a market-to-book ratio of 4.0. What is the ratio of the book value of debt to the market value of equity? (Do not round intermediate calculations. Round your answer to 2 decimal places.)Which one of the following statements is correct? Multiple Choice If the total debt ratio is greater than .50, then the debt-equity ratio must be less than 1.0. Long-term creditors would prefer the times interest earned ratio be 1.4 rather than 1.5. The debt-equity ratio can be computed as 1 plus the equity multiplier. An equity multiplier of 1.2 means a firm has $1.20 in sales for every $1 in equity. An increase in the depreciation expense will not affect the cash coverage ratio. 1
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