Atlanta Company$ 820,000490,000Atlanta CompanySpokane CompanyTotal liabilitiesTotal equityCompute the debt-to-equity ratio for each of the above companies.Choose Numerator:100Atlanta CompanySpokane CompanySpokane Company$ 298,9001,786,000Debt to equity ratio/Choose Denominator:mationWhich company appears to have a riskier financing structure?Prev4 of 5= Debt-to-equity ratioIIMacBook AirNext >

A financial indicator called the debt-to-equity ratio reveals how much debt and shareholder equity…

Atlanta Company $ 820,000 490,000 Atlanta Company Spokane Company Total liabilities Total equity Compute the debt-to-equity ratio for each of the above companies. Choose Numerator: Debt to equity ratio 1 1 O Atlanta Company O Spokane Company Spokane Company $ 298,900 1,786,000 1 1 Choose Denominator: Which company appears to have a riskier financing structure? = Debt-to-equity ratio = =

Atlanta Company $ 820,000 490,000 Atlanta Company Spokane Company Total liabilities Total equity Compute the debt-to-equity ratio for each of the above companies. Choose Numerator: Debt to equity ratio 1 1 O Atlanta Company O Spokane Company Spokane Company $ 298,900 1,786,000 1 1 Choose Denominator: Which company appears to have a riskier financing structure? = Debt-to-equity ratio = =

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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Company has return on assets 12.4% and debt-equity ratio is 0.25. What is ROE? Select one: a.35.43% b.9.18% c.9.3% d.15.5%
What is the debt ratio for a firm with a debt-equity ratio of 0.5? Multiple Choice O 35% 33.3% 54% 66.7%
RATIO ANALYSIS. Debt Ratio Activity 6 · Understand the information provided by the debt ratio. · Identify the expected range and whether an increasing or decreasing trend is preferred. Purpose: The debt ratio compares total liabilities to total assets. This ratio measures the proportion of assets financed by debt. It is a measure of long-term solvency. Total liabilities DEBT RATI0 = Total assets JOHNSON & CITIGROUP 12/31/99 HEWLETT- PACKARD 10/3 1/99 JOHNSON 1/03/99 WAL-MART 1/31/99 ($ in 000s) Assets $716,937,000 $35,297,000 $26,211,000 $49,996,000 Liabilities 667,251,000 17,002,000 12,621.000 28,884,000 Stockholders' Equity $ 49,686,000 $18,295,000 $13,590,000 $21,112,000 Source: Disclosure, Inc, Compact D/SEC, 2000. 1. For each-company listed above, compute the debt ratio. Record your results below. Debt ratio: 0.93 2. The debt ratios computed above are primarily in the ranġe (less than 0,40 / 0.40 through 0.70 / over 0.70): 3. % of Wal-Mart's assets are financed by debt. 4.…
Sales/Total assets Return on assets (ROA) 1.8x 8.0% Return on equity (ROE) 15.0% Calculate Caulder's profit margin and debt-to-capital ratio assuming the firm uses only debt and common equity, so total assets equal total invested capital. Do not round intermediate calculations. Round your answers to two decimal places. Profit margin: Debt-to-capital rabo:
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