Question

stadford, Inc. has a debt-to-equity ratio of 2/3. The debt-to-equity indirectly describes the firm's: a. capital...

stadford, Inc. has a debt-to-equity ratio of 2/3.

The debt-to-equity indirectly describes the firm's:

a.

capital structure

b.

capital budget

c.

asset allocation

d.

working capital

e.

risk structure

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Answer #1

Ans a) capital structure

The debt-to-equity indirectly describes the firm's capital structure.

debt-to-equity ratio = Total Liabilities / Shareholders equity

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