Corporate Finance (The Mcgraw-hill/Irwin Series in Finance, Insurance, and Real Estate)
Corporate Finance (The Mcgraw-hill/Irwin Series in Finance, Insurance, and Real Estate)
11th Edition
ISBN: 9780077861759
Author: Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher: McGraw-Hill Education
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Chapter 16, Problem 29QP
Summary Introduction

To determine: The relationship between shareholder risk and capital structure.

Introduction:

Debt equity ratio: It is the fiscal ratio signifying the fractions of shareholder’s debt and equity to finance a firm’s assets. Debt equity ratio is associated to leveraging and the ratio is known as gearing or risk.

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Corporate Finance (The Mcgraw-hill/Irwin Series in Finance, Insurance, and Real Estate)

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