How do you determine the mix (percentages or weights) of debt vs equity from the Debt to Equity (D/E) Ratio? For example, if a company has a D/E Ratio = .667, what is the percentage of debt, of equity? For example, if a company has a D/E Ratio = 1, what is the percentage of debt, of equity? For example, if a company has a D/E Ratio = 1.5, what is the percentage of debt, of equity?

Q: Calculate the equity multiplier of the ABC Company if the total debt ratio of is 1.5

A: The given total debt ratio can also be written as : =TOTAL DEBT / TOTAL ASSETS

Q: Describe the Ratios that show how a firm uses debt financing?

A: Debt to Asset ratio It is a ratio that helps in measuring the company’s assets financed through the…

Q: The leverage ratio is equal to average total __________divided by average _________________.a.…

A: Leverage ratio: It overlooks the mixture of debt and equity which is required for analyzing the…

Q: A firm has an ROE of 4.4%, a debt-to-equity ratio of 0.7, and a tax rate of 35% and pays an interest…

A: Given:ROE of firm =4.4%Debt to equity ratio=0.7Tax rate=35%Interest on debt =5%To compute:Operating…

Q: When Total Debt/ Total Sources Ratio is 70%,what is Equity / Total Debt Ratio? a)30 % b)233 %…

A: Introduction: The total equity to total debt ratio is a measure of the company's financial health.…

Q: What are the importance of the following financial ratios? Quick ratio. Debt to equity ratio.…

A: 1) Quick ratio= quick assets/ current liabilities  Quick assets= current assets- inventory- prepaid…

Q: Raskin LLC has a debt-equity ratio of 1.38. What is the equity multiplier?

A: The ratio that shows the portion of the assets that are financed by equity is term as the equity…

Q: What is Ali Babba’s WACC if it has $15,905 with 9% after-tax cost of debt, $7,544 with 8%  cost of…

A: Weighted Average Cost of Capital : It is the weighted average cost of all capital used whether it is…

Q: Does dividend policy affect on Debt to equity ratio? And what does the negative D/E ratio indicat

A: Debt equity ratio indicates the level of use of financial leverage in a company and the formula for…

Q: Refer to Exhibit 4.1 What is the firm's total debt to total capital ratio? Do not round your…

A: The question is based on the concept of calculation of total debt and total capital. The total debt…

Q: firm has a debt-to-equity ratio of 0.60 and a market-to-book ratio of 4.0. What is the ratio of the…

A: Debt to equity ratio = book value of debt/book value of equity Market to book value = market value…

Q: Fox company has a ratio of (total debt/total assets) that is above the industry average,and a ratio…

A: The correct option with proper explanation are as follows

Q: consider a company with ROE of 14.5% and a profit margin of 6.5%. if the total asset turnover is 1.8…

A: Debt equity ratio is a leverage ratio. It gives relative measure of debt to equity. Here Dupont…

Q: What does the market value of debt and equity refer to? O A. The values at which debt and equity are…

A: Intrinsic value of an asset is the price which is determined based on the actual financial…

Q: What is the formula for the Debt to Earnings Ratio? (Assume Preferred Stock Dividends)

A: a. Debt to earnings Ratio - This ratio is indicates the monthly income generated to pay its…

Q: a. What is the company's total book value of debt? b. The total market value? c. What is your best…

A:

Q: A firm has a debt-to-equity ratio of 0.84 and a market-to-book ratio of 3.0. What is the ratio of…

A: given information debt to equity ratio = 0.84 market to book ratio = 3.0

Q: The Debt to Equity ratio calculation measures Group of answer choices c. How much debt the company…

A: Debt-to-Equity Ratio refers to the relative proportion of debt and equity to finance the assets of…

Q: Write the formula for the following ratios and what each ratio measures:

A: Ratios are the measure which are used by the company to measure actually as well as it shows the…

Q: &G Co. has an equity multiplier of 2.4, and its assets are financed with some combination of…

A: Equity multiplier = Total Assets/ Equity 2.40 = (Equity + Debt)/ Equity 2.40 x Equity = Equity+ Debt…

Q: A firm has a debt-equity ratio of 1.10. The total debt ratio is closest to:    A. 0.91.   B.…

A: The debt-equity ratio represents the overall debt to the overall equity it is used to evaluate the…

Q: A firm has a debt-equity ratio of 1.10. The total debt ratio is closest to:

A: The debt ratio is the ratio that shows the percentage of total debts used by the company. The debt…

Q: Find the firm’s Cost of equity, given only the following information about the firm: the firm’s cost…

A: The cost which the firm has to bear for having equity funds in their capital structure is called…

Q: GNR plc. has a total debt ratio of 0.43. (Round your answers to 2 decimal places (e.g., 32.16).)…

A: Given Total Debt ratio= 0.43

Q: a. What is the market debt-to-value ratio of the firm? b. What is University's WACC? (For all the…

A: Market value is calculated by present value of cash flows from the debt issued at given yield to…

Q: firm with a debt ratio of 0.75, will have an equity multiplier of ____.   a. 0.25   b. 4.00   c.…

A: Debt Ratio shows leverage of entity. It shows proportion entity’s assets financed using debt.

Q: ased on these numbers, how well is the company doing? How are their levels of debt financing?

A: Solvency  ratio can be defined as those financial ratios with the help of which it can be determined…

Q: Briefly describe the ratios that can be used to evaluate a company’s ability to pay long-term debt.

A: Ratio analysis:   It is the financial analysis tool for measuring the profitability, liquidity,…

Q: According to DuPont analysis, the impact of debt on a company's profitability is measured by the.…

A: Dupont analysis is a framework to analyze Fundamental performance of a corporation.

Q: What are two ratios indicating how well the company manages its debt ?.

A: Ratio analysis means where different ratio of various years of years companies has been compared and…

Q: Which of the following choices best describes reasonable conclusions that you might make about the…

A: Answer) Calculation of Current Ratio of Company A and Company B    Company A  Company B…

Q: Assuming Target’s industry had an average current ratio of 1.0 and an average debtto equity ratio of…

A: Current ratio of the company means ratio of current assets with current liabilities. It means how…

Q: What is the equity multiplier and debt equity ratio if the xyz Ltd has 0.75 as a total debt ratio?

A: The debt-equity ratio is determined by debt divided by equity, whereas the equity multiplier is…

Q: Aurelia Industries has a debt to asset ratio of 0.66. Their equity multiplier is:

A: The ratio that shows the portion of the assets that are financed by equity is term as the equity…

Q: A firm has a debt-to-equity of 0.57. What is the debt-to-total assets ratio?

A: Given:Debt to equity or D/E = 0.57A = Total assetsD/A = debt to total assets

Q: cost

A: Cost of debt: The term cost of debt can be define as the rate of interest that is paid by the…

Q: A firm has a debt-to-equity ratio of 2. What is its equity multiplier?

A: Debt to equity ratio = Total debt / Total equity Debt ratio of 2 means  debt is 2 times of equity…

Q: What do the following ratios reveal about the financial health of a company? And how do I calculate…

A: Long Term Debt Paying Ability Ratios are also known as Leverage or Capital Structure Ratios. These…

Q: Show the calculation of the following solvency ratios: (1) the debt to equity ratio, and (2) the…

A: Solvency: Solvency is the capability of a company to pay the long-term liabilities which are due.…

Q: Evaluate the company’s solvency and capital structure using leverage ratios and interpret your…

A: Ratio Analysis - The ratio is the technique used by the prospective investor or an individual or…

Q: Queen, Inc., has a total debt ratio of .46.     a. What is its debt-equity ratio? (Do not round…

A: Assume that the total assets of Q Inc., are $100 million. Hence, calculate the value of total debt…

Q: The debt to equity ratio is calculated as Total assets / Total equity. Current liabilities / Total…

A: Debt to equity ratio:The ratio of company’s total debt to the total stockholders’ equity is known as…

Q: . If the market value of debt is $159,434, market value of preferred stock is $88,315, and market…

A: Preferred stock is the type of stock that has the features of both equity and debt. It is also…