0
Why is the debt to tangible net worth usually higher than the debt-equity ratio?
Wiki User
∙ 11y ago
Because for the calculation of the debt to to tangible assets ratio ONLY the tangible assets (machinery, buildings and land, and current assets, such as inventory, etc...) are taken into consideration for the calculation VS the debt ratio where ALL of the assets (tangible and intangible such as patents, trademarks, copyrights, goodwill and brand recognition) are taken into consideration for the calculation.
Wiki User
∙ 11y ago
Add your answer:
Earn +20 pts
A firm has an expected return on equity of 16 and an aftertax cost of debt of 8 What debtequity ratio should be used in order to keep the weighted average cost of capital at 12?
7
What is the debt to tangible net worth ratio?
There is not an exact formula for the debt to tangible net worth ratio. However, generally speaking, it is an exact ratio of how much debt a company or person is in, compared to how much they are worth (net worth).
In the context of ratio analysis what is TOL?
TOL stands for Total Outside Liabilities. It is used in the calculation of the ratio Total Outside Liabilities / Total Tangible Net Worth.
A company with a higher dividend payout ratio will have what kind of debt to assets ratio?
high
What is the impact of a stock repurchase on a company's debt ratio?
Stock repurchases increases the debt equity ratio towards higher debt.
A firm has an expected return on equity of 16 and an aftertax cost of debt of 8 What debtequity ratio should be used in order to keep the weighted average cost of capital at 12?
7
What is net sales divided by tangible assets ratio?
fixed assets turnover ratio
What is the debt to tangible net worth ratio?
There is not an exact formula for the debt to tangible net worth ratio. However, generally speaking, it is an exact ratio of how much debt a company or person is in, compared to how much they are worth (net worth).
In the context of ratio analysis what is TOL?
TOL stands for Total Outside Liabilities. It is used in the calculation of the ratio Total Outside Liabilities / Total Tangible Net Worth.
Who knows about overdrive?
Overdrive is a gear in your transmission that allows you to save gas and lower engine rpm by changing the net gearing to a higher, more gas effiecient ratio. Typically it is higher than 1 to 1 which is usually the top gear. This makes it like you had a higher ratio rearend gear installed also allowing a higher top speed at a slower acceleration curve. Consider it an economy gear ratio.
What is the slenderness ratio of a concrete square piles?
It is the ratio of the effective length of the pile relative to it's radius of gyration of it's cross section. It is usually less or equal to 200. The higher the ratio the weaker or ineffective the strength of the square piles.
What is the difference between a LCD and a plasma flat screen tv?
The main difference between plasma and LCD panels is the contrast ratio (deeper blacks the higher the ratio) and the viewing angles (the wider the angle you are to the actual screen, it usually gets worse). Plasma screens usually have better angle viewing and contrast ratio at the expense of a higher power consumption and lower native resolution than LCD panels.
Is a high P E ratio better than a low P E ratio?
No. A higher P E ratio can result in much better results than a lower P E ratio, but it is a lot riskier. Meaning a higher risk of loss for the higher P E ratio.
A company with a higher dividend payout ratio will have what kind of debt to assets ratio?
high
How many prison guards usually work in a UK based prison?
It varies depending on the size of the facility. There are government guidelines for the ratio of guards to prisoners. The higher the capacity of the prison - the higher the number of guards required.
Is rubber is higher poission ratio?
yes
Why dependency ratio higher in India?
It jest is
