FUND. OF CORPORATE FINANCE W/ACCESS >I
FUND. OF CORPORATE FINANCE W/ACCESS >I
15th Edition
ISBN: 9781323510728
Author: Berk
Publisher: PEARSON
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Chapter 18, Problem 19P
Summary Introduction

Debt to Equity Ratio: This ratio reflects the relationship of company’s total liabilities to total equity. It is used to represent financial leverage in the business. Higher ratio means that the company has used debts more than the owner’s capital to acquire the assets.

Internal growth rate: It refers to that rate which represents the growth of a firm at maximum rate without utilization of funds from external sources.

Return on Assets (ROA): It is a profitability ratio which shows the profit earned by the Company in relation with its total assets, in percentage form.

To determine:

The new debt-equity ratio of I Company.

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