EBK CORPORATE FINANCE
EBK CORPORATE FINANCE
4th Edition
ISBN: 9780134202785
Author: DeMarzo
Publisher: VST
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Chapter 18.4, Problem 2CC
Summary Introduction

To discuss: The statement that the firm retains a constant debt to equity ratio to make simpler flow-to equity computation.

Introduction:

The debt-equity ratio specifies how much debt a company is using to invest in its assets, in relation to the worth of shareholders equity. This ratio is computed by dividing the company’s total liabilities by its shareholder’s equity; which is used to know the company’s financial leverage.

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EBK CORPORATE FINANCE

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Financial ratio analysis; Author: The Finance Storyteller;https://www.youtube.com/watch?v=MTq7HuvoGck;License: Standard Youtube License