Discuss how using debt ratios applies to a business. Discuss how using debt ratios applies to your personal finances. What does the P/E ratio or EPS tell you about a companies’ overall financial condition? 4. What industry statistics can a business use for comparison?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Discuss how using debt ratios applies to a business.
Discuss how using debt ratios applies to your personal finances.
What does the P/E ratio or EPS tell you about a companies’ overall financial condition?
4. What industry statistics can a business use for comparison?
5. How can they use that information in their business? Please give a specific example.

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As per the authoring guidelines, the first three questions are answered. Please post the remaining questions separately.

A financial ratio that gauges how much leverage a corporation has is known as a debt ratio. A decimal or percentage expression of the ratio of total debt to total assets is referred to as the debt ratio. It is given as the percentage of a company's assets that are financed by debt.

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