Sub Part-1
Debt-Equity ratio:
Debt-equity ratio means the proportion of total liabilities to total
The debt-equity ratio of the two companies.
Sub-Part 2
Analysis of Debt-Equity ratio:
The company having higher debt-equity ratio means that it had relied more on outside funds rather than stockholder's funds. Hence, such companies are considered as more riskier as compared to other companies.
The Company having least risky financial structure.
Sub Part 3
The Company having more or less risky financial structure as compared to Industry standards.

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Chapter 14 Solutions
FUNDAMENTAL ACCT PRIN CONNECT ACCESS
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