Which of the following risk is affected largely by the debt-to-equity ratio? Liquidity risk Financial risk Management risk Overall Business risk

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: Identify the correct statement in relation to the financial market:

A: The financial market is a place where trading of financial assets takes place. It is a place where…

Q: Explain what is the risk component of financial assets.

A: Risk can be described as the likelihood of an unexpected or negative outcome. Any act or activity…

Q: What is the process to express leverage is in terms of the company's debt-to-equity ratio?

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

Q: Explain debt to equity ratio and how to calculate.

A:

Q: Define Debt-to-equity ratio

A: Debt to equity ratio is an important ratio which is used by the companies in order to determine the…

Q: (b). Briefly discuss how a firm should choose its debt-equity ratio.

A: Debt- equity ratio is the ratio which measures about how much the firm is financed through the funds…

Q: What impact do bond ratings have on the cost of debt to the issuing firm?

A: Bond Ratings: It is the ratings that portrayals of the reliability of corporate or government bonds.…

Q: Difference between equity and debt?

A: Definition: Debt: Debt refers to the money borrowed by the borrower at a fixed interest rate. The…

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: Which one of the following is not a factor that helps determine a company's credit rating? Its…

A: A credit rating can be defined as the evaluation of a person or entity’s ability to pay obligations.…

Q: In analyzing a company's financial statements, which financial statenent would a potential investor…

A: Financial statements: Financial statements are condensed summary of transactions communicated in the…

Q: tatements, how would one calculate the Book Debt-to-Equity Ration and the Market Debt-to-Equity…

A: Debt to Equity ratio is the ratio which indicates the relative proportion of debt and equity which…

Q: What does the debt to equity ratio shows, and how is it calculated?

A: Debt to equity ratio and its implication:The ratio of company’s total debt to the total…

Q: What are the major liquidity ratios and leverage ratios? Identify the stakeholders who are…

A: Ratio Analysis Company's liquidity, operational efficiency  and profitability  are  measured  using…

Q: How are financial markets classified according to maturity of the claim?

A: In general, financial markets refer to any marketplace where securities are traded, such as the…

Q: What type of financial instrument which indications of equity towards the holder of the policy?

A: Introduction : In simple words, financial instruments refers to the intangible units, which are…

Q: Explain the risk of investing in a company based on

A: Debt to equity ratio indicates that how much Debt is company have and how much company is having…

Q: What are some factors that financial managers consider whenchoosing the maturity structure of their…

A: The factors need to be considered by the manager when selecting the maturity structure for the debt…

Q: What is financial leverage? Explain the concept in relation to fina

A: Financial leverage: Financial leverage is the borrowing of debt to finance assets of the…

Q: The debt ratio is used primarily as a measure of:     Short-term liquidity.     Profitability.…

A: The debt ratio indicates the percentage of total assets financed by long term debts

Q: How does the debt-to-equity ratio affect the return on equity?

A: Debt to equity ratio: The debt-equity ratio is also known as an external and internal equity ratio.…

Q: Which of the following is an idicator of financial risk ? a)     Net Sales / Total Assets b)…

A: The Financial ratio is mainly used by the investor for measuring the financial performance of the…

Q: what are liquidity ratios, leverage ratios, profitability ratios, and market measure rat

A: Ratios are calculated in order to identify the ability of the company from various parameters.

Q: What are the difference between horizontal and vertical analyses of financial statements?

A:

Q: In deciding the appropriate level of current assets for the firm, management is confronted with…

A: Current Assets: They are the assets that can be converted into cash easily and short term in nature.…

Q: Which type of financial ratio tells you how well a company can cover its long-term liabilities?

A: Financial ratios: Financial ratios are performance measurement methods used by the company to…

Q: Which ratios convey more important information to a credit analyst those revolving around the levels…

A: Investors, creditors and other stakeholders use various financial ratios and measures to determine…

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: From the standpoint of an Investor, is equity or debt riskier? Explain.

A: Investors are who wants to earn some profit on investment but investors are always concerned with…

Q: What do the Debt management ratios reveal?

A: Debt management ratio: Debt management ratio reveals the firm’s ability to repay the long term debts…

Q: Overall Comparative Financial Analysis is included:

A: Comparative financial analysis uses financial information of different time periods to evaluate the…

Q: describe and compare alternative ways to estimate the probability of company defaulting on its debt…

A: The predicted rise in the market value of its assets, the face value and maturity of the debt, and…

Q: Is there a readily recognisable debt-to-equity ratio that maximises a firm's value? What are your…

A: The debt-to-equity ratio is derived by dividing a company's total debt by its total equity. This…

Q: Illustrate how the debt-to-equity ratio impacts the return on equity?

A: A high debt-equity ratio can be acceptable in light of the fact that it shows a firm can without…

Q: How the debt-to-equity ratio affects the return on equity?

A: The debt-equity ratio is the ratio which demonstrate the proportion of debt capital in comparison to…

Q: Describe the Debt Management Analysis?

A: Debt is an amount of money borrowed by one person from another person. Debt is utilized by numerous…

Q: State the significance and method of Debt to Equity ratio.

A: Debt-equity ratio- Significance and method:Debt-to-equity ratio analysis the relative contribution…

Q: Describe the debt-to-equity ratio and explain how creditors and owners use this ratio to evaluate a…

A: Ratio analysis is a method of analyzing a company's liquidity, profitability, and operational…

Q: What does the debt to equity ratio show, and how is it calculated?

A: The debt-to-equity (D/E) ratio is calculatedby dividing a company's total liabilities by its…

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…

Stock Yields

The stock yield is otherwise known as the dividend yield. The dividend yield is an annual payment of the stock dividends to the holder of a firm’s stock. The dividend yield is a financial ratio to measure the value of dividend payout every year for the relative stock price. The yield of a stock is usually shown in a percentage that discloses the expected future earnings from stock depending on the current stock price in the future. Stock yield will change depending on the market fluctuations and in accordance with the market fluctuations, the dividends will be increased or decreased by the firm.