Definition:The equity ratio is afinancial ratiothat measures equity as a percentage of total assets. This shows the proportion of assets that are owned outright by the shareholders of the company. In other words, the equity ratio calculates the ratio of total assets that were financed by investo...
The asset/equity ratio is one of the standard formulas used to ascertain a company's financial stability. Using the asset/equity...
百度试题 题目2. A firm has a debt-equity ratio of .55. What is the equity multiplier if total equity is $4,500? A. .45 B. 1.55 C. 1.82 D. 2.22 相关知识点: 试题来源: 解析 B.1.55 反馈 收藏
Expressed as a formula, the debt to equity ratio is: (Liabilities/Stockholders’ Equity):1. Generally, the higher the ratio of debt to equity, the greater is the risk for the corporation’screditorsand prospective creditors. Example of Debt to Equity Ratio ...
Definition:The debt to equity ratio is a financial, liquidity ratio that compares a company’s total debt to total equity. The debt to equity ratio shows percentage of financing the company receives from creditors and investors. A high debt to equity ratio shows that a company has taken out ...
The formula is: Net assets yield = net profit average net assets * 100% Average net assets = (net assets at the beginning of the year + year-end net assets) 2 The rate of return on equity that reflects the owner's equity is highly comprehensive....
Answer: Debt-equity ratio=56.25\% Equity Multiplier=1.5625 Explanation: Since the debt ratio is 0.36, then we can say that the debt is 36% of...Become a member and unlock all Study Answers Start today. Try it now Create an account Ask a ques...
Companies finance theacquisitionof assets by issuing equity or debt. In some cases, they use a combination of both. Investors monitor how much shareholders' equity is used to pay for and finance a company's assets. This ratio is a risk indicator to determine a company's leverage. A company...
1. Shareholder Equity Ratio A ratio used to help determine how much shareholders would receive in the event of a company-wide liquidation. The ratio, expressed as a percentage, is calculated by dividing total shareholders' equity by total assets of the firm, and it represents the ...
The interest coverage ratio is a debt and profitability ratio used to determine how easily a company can pay interest on its outstanding debt.