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

Q: According to financial bep, what is the position of bep, what will be the operation if there is only…

A: Financial break even point is a point where earnings before income tax is equal to financial cost of…

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: 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: What is Ration Analysis in Financial Analysis?

A: Financial analysis is done for financial statements such as balance sheet for the period ended,…

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: Define the term Liabilities and Stockholders' Equity?

A: Accounting is primarily concerned with identifying, recording, measuring, summarizing transactions…

Q: What is dividend payout ratio of AGA?

A: Dividend payout ratio is the percentage of dividend paid out of Net Income. It is computed as =…

Q: What are the primary differences between debt financing and equity financing?

A: Financing refers to providing the funds to the business for business activities, individuals and…

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: What is ratio on equity?

A: Ratio analysis is a tool used by the financial analyst to measure the financial performance of the…

Q: Which of the following risk is affected largely by the debt-to-equity ratio? Liquidity risk…

A: The debt-to-equity (D/E) ratio reflects a firm's revenue obligations to its shareholder equity and…

Q: Compare between debt and equity financing perspectives for a firm.

A: Firms often choose between the different sources of capital for financing needs to fund the…

Q: What is Debt to equity ratio of PETRON?

A: The formula for the calculation of debt equity ratio is as follows: Debt equity ratio=Debt Equity

Q: What is the difference between debt and equity financing?

A:

Q: What does the market value of debt and equity refer to? O A. The values at which debt and equity are…

A: Intrinsic value of an asset is the price which is determined based on the actual financial…

Q: What is the formula for the Debt to Earnings Ratio? (Assume Preferred Stock Dividends)

A: a. Debt to earnings Ratio - This ratio is indicates the monthly income generated to pay its…

Q: Calculate the debt ratio

A: Debt ratio is a financial ratio which is calculated by dividing the total liabilities by the total…

Q: Differentiate equity financing from debt financing.

A: Finance is the term used for funding, raising or investing in the various business activities. For a…

Q: Define the terms "debt security" and "equity security." Include comparisons and contrasts in your…

A: Introduction: Securities: To raise money from the public or private markets, securities are the…

Q: What are factors that affect the expected rate of return for holders of debt and equity?

A: The expected return is the return which the investors expect to receive in return from their…

Q: Debt to Total Assets Ratio can be improved by: A. Borrowing More, B. Issue of Debentures, C. Issue…

A: Debt to total assets ratio measures the proportion of total assets finance by creditors. it can be…

Q: what is the meaning of debt-to-asset ratio?

A: Debt is the amount of liability which arises from past or present event for which a business is…

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 are two ways to determine the cost of equity?

A: Cost of equity can be measured using: CAPM and constant dividend growth model.…

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 advantages and disadvantages of debt financing? Of equity finacing?

A: Financing is a process of providing funds for business activities, making purchases, and investing.…

Q: Is this a right formula? Market Value of Equity = Market capitalization - cash and investment +…

A: Market value of equity and market capitalization are both same and is calculated as number of shares…

Q: What is the statement of equity under paid-in capital?

A: Meaning of Paid-in capital:Paid-in capital represents the funds raised by the business through…

Q: Define the term Return on Common Equity? How does it measure profitability?

A:

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: Cost of equity can be calculated using the SML approach or the dividend discount models. True or…

A: Cost of equity is the return that the company pays to its shareholders in exchange for providing the…

Q: Describe the process of determining the Cost of Equity?

A: The cost of equity is the revenue a firm needs to determine if a venture satisfies the conditions of…

Q: What is the equity multiplier and debt equity ratio if the xyz Ltd has 0.75 as a total debt ratio?

A: The debt-equity ratio is determined by debt divided by equity, whereas the equity multiplier is…

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: d debt percentage

A: The net rate of return is the return on an asset after expenses such as taxes, depreciation, and…

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: Recognize the difference between equity and debt instruments.

A: solution concept Equity means the  owners of the company. The equity share holders of the company…

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: Calculate Debt-to-equity Times interest earned Return on Financial leverage

A: Debt to equity=Outsiders' FundsShareholders' Funds 2019 2018 2017 2016 36,683,0008,573,000=4.28…

Q: Explain why a long term creditor should be interested in liquidity ratios. Include some examples or

A: Introduction : In simple word, the liquidity of a business refers to the amount of cash or easily…

Q: Explain how the use of more debt in the company affects return on equity (ROE).

A: ROE or Return on Equity relates to portion of equity capital invested by owner that are generally…