Chapter 14, Problem S14.12SE

To determine

Concept Introduction:

Debt to equity:

Debt to equity can be defined as a ratio that measures a company’s financial leverage. It is calculated by dividing total liabilities to total shareholder’s equity.

Debt to equity is calculated as under –

$Debttoequity=\frac{Totalliabilities}{Totalshareholder’sequity}$

To Compute:

Debt to equity ratio for Richards Corporation