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Why is debt and equity important?

Updated: 9/25/2023
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Q: Why is debt and equity important?
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What is the total debt of 1233837 and total assets of 2178990 what is the firms debt to equity ratio?

Debt equity ratio = total debt / total equity debt equity ratio = 1233837 / 2178990 * 100 Debt equity ratio = 56.64%


Debt equity ratio tells about what?

debt equity ration


How can you control your debt ratio and debt to equity ratio?

how to control debt equity ratio


Breckenridge Ski Company has total assets of 422235811 and a debt ratio of 29.5 percent Calculate the companys debt-to-equity ratio and the equity multiplier?

What is given is: total assets = $422,235,811 Debt ratio = 29.5% Find: debt-to-equity ratio Equity multiplier Debt-to-equity ratio = total debt / total equity Total debt ratio = total debt / total assets Total debt = total debt ratio x total assets = 0.295 x 422,235,811 = 124,559,564.2 Total assets = total equity + total debt Total equity = total assets - total debt = 422,235,811 - 124,559,564.2 = 297,676,246.8 Debt-to-equity ratio = total debt / total equity = 124,559,564.2 / 297,676,246.8 = 0.4184 Equity multiplier = total assets / total equity = 422,235,811 / 297,676,246.8 = 1.418


What term describes the result of trading a percentage of ownership in a company to an investor in exchange for money?

Debt


What is the equity multiplier if a company has a debt equity ratio of 1.40 return assets is 8.7 persent and total equty is 520000?

The equity multiplier = debt to equity +1. Therefore, if the debt to equity ratio is 1.40, the equity multiplier is 2.40.


Cost and benefits of debt financing and equity financing?

benefit of debt and equity financing


What is debt to equity conversion?

Debt to equity conversion is also known as hybrid transaction or debt-equity swap. In such a swap, the borrower is allowed to convert his debt into equity shares and the lender of the loan, hence, becomes the shareholder in due process.


How do you solve for debt to equity ratio with an equity multiplier of 2.47?

Equity Multiplier = 2.4 Therefore Equity Ratio = 1/EM Equity Ratio = 1/2.4 = 0.42 MEMORIZE this formula: Debt Ratio + Equity Ratio = 1 Therefor Debt Ratio = 1 - Equity Ratio = 1 - 0.42 = 0.58 or 58%


Is equity considered debt?

No it is the opposite of debt.


What is the debt ratio is total assets are 136000 equity is 31000 current liability is 24000 and total liabilities are 105000?

Debt to Equity ratio =Total liabilities / equity Debt to equity ratio = 105000 / 31000 = 3.387


How does share repurchase affects the debt equity ratio of the company?

Stock repurchases increases the debt equity ratio towards higher debt. Share buyback reduces the book value per share and reduces equity hence increasing the debt-to-equity ratio.