MANAGERIAL ACCOUNTING (LL)W/CONNECT
MANAGERIAL ACCOUNTING (LL)W/CONNECT
16th Edition
ISBN: 9781260489293
Author: Garrison
Publisher: MCG
Question
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Chapter 15, Problem 14F15
To determine

Concept Introduction:Debt Equity Ratio:

  • Debt Equity Ratio is a measure of the proportion of how much debt has been used to finance the equity and operations of the business.
  • A higher Debt equity ratio represents a highly leveraged business.
  • A high Debt Equity Ratio is also an indicator of higher interest payments and lower profitability.
  •   Debt Equity Ratio =DebtEquity

To Compute:

Debt Equity ratio for the entity at the end of the year

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