Search results
Dec 5, 2013 · Debt-to-Equity Ratio = Total Liabilities / Shareholder's Equity Both the Total Liabilities and Shareholder's Equity are found on the Balance Sheet. When this number is less than1, it indicates that the company's creditors have less money in the company than its equity holders. That, typically, would be an ideal threshold to be below.
debt to equity ratio compares the total liabilities to the total equity of the company it paints a useful picture of the company s liability position and is ...
debt to equity ratio compares the total liabilities to the total equity of the company it paints a useful picture of the company s liability position and is ...
Jul 3, 2015 · All the above mentioned ratios are ideal. Its where these are used to analyse one's company's balance sheet. D/E Ratio is while considering a new finance exposure by a bank or financial institution while current ratio is looked into during financing short term loans, viz., cash credit, financing on stock, etc.
May 8, 2013 · a. a. 1. Uneffected Bonus share does not effect equity. Bonus issue will only increase the number of shares a shareholder is holding but not the ratio/percentage of holding. Hence there will be no increase in the capital and no change in the debt equity ratio. Bonus issue will only increase the number of shares a shareholder but do not increase ...
Mar 29, 2016 · Debt equity ratios is 3: 1 means 9 lac : 3 lac. Asset = Current Liabilities + Debt + Equity i.e. 20 Lac = Current Liabilities + 9 Lac + 3 Lac Current Liabilities = 20 Lac - 12 Lac = 8 Lac. Current Ratio is 1.5 : 1 i.e = 1.5 x 8 Current Ratio = 12 Lac
Feb 15, 2015 · Which of the following statements is correct? Please choose the appropriate one. (a) A Higher Receivable Turnover is not desirable, (b) Interest Coverage Ratio depends upon Tax Rate, (c)Increase in Net Profit Ratio means increase in Sales, (d) Lower Debt-Equity Ratio means lower Financial Risk. (e) Non of the above.
Mar 26, 2015 · Davis Retail Inc. has total assets of $7,500,000 and a current ratio of 2.3 times before Top Answer: Correct answer c. Davis’ current ratio will be lower than2.3 times as shown below. Before purchase: $7,50 ...
The best debt-to-equity ratio for a firm that maximizes its value. The optimal capital structure for a company is one which offers a balance between the ideal debt-to-equity range and minimizes the firm's cost of capital. In theory, debt financing generally offers the lowest cost of capital due to its tax deductibility.
Sep 22, 2014 · Follow ABC Ltd. has a Debt Equity Ratio of 1.5 as compared to 1.3 Industry average. It means that the firm has:
