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Titan Electronics Inc. has total assets of $2,500,000 and total liabilities of $1,200,000. The industry average debt-to-equity ratio is 1.50. Calculate Titan Electronics' debt-to-equity ratio and determine whether the company's default risk is higher or lower than the average of other companies in the industry.

Titan Electronics Inc. has total assets of $2,500,000 and total liabilities of $1,200,000. The industry average debt-to-equity ratio is 1.50. Calculate Titan Electronics' debt-to-equity ratio and determine whether the company's default risk is higher or lower than the average of other companies in the industry.

Intermediate Financial Management (MindTap Course List)
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter7: Analysis Of Financial Statements
Section: Chapter Questions
Problem 2P: Vigo Vacations has $200 million in total assets, $5 million in notes payable, and $25 million in...
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Titan Electronics Inc. has total assets of $2,500,000 and total liabilities of $1,200,000. The industry average debt-to-equity ratio is 1.50. Calculate Titan Electronics' debt-to-equity ratio and determine whether the company's default risk is higher or lower than the average of other companies in the industry.
Transcribed Image Text:Titan Electronics Inc. has total assets of $2,500,000 and total liabilities of $1,200,000. The industry average debt-to-equity ratio is 1.50. Calculate Titan Electronics' debt-to-equity ratio and determine whether the company's default risk is higher or lower than the average of other companies in the industry.
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