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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.

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What is the impact of a stock repurchase on a company's debt ratio?

Stock repurchases increases the debt equity ratio towards higher debt.


What is considered a good equity ratio for a company?

A good equity ratio for a company is typically around 0.5 to 0.7, indicating that the company has a healthy balance between debt and equity. A higher ratio suggests that the company is less reliant on debt financing.


What is a good assets to equity ratio for a company?

A good assets to equity ratio for a company is typically around 2:1. This means that the company has twice as many assets as it does equity, which indicates a healthy balance between debt and equity financing.


What is a good debt-to-equity ratio for a company?

A good debt-to-equity ratio for a company is typically around 1:1 or lower. This means that the company has roughly the same amount of debt as it does equity, indicating a balanced financial structure.


What is the ideal debt to equity ratio for a company?

The ideal debt to equity ratio for a company is typically around 1:1 or lower. This means that the company has an equal amount of debt and equity, which is considered a balanced and healthy financial structure.


What is a good asset to equity ratio for a company?

A good asset to equity ratio for a company is typically around 2:1. This means that the company has twice as many assets as it does equity, which indicates a healthy balance between debt and ownership in the business.


What is considered a good debt to equity ratio for a company?

A good debt to equity ratio for a company is typically around 1:1 or lower. This means that the company has a balanced mix of debt and equity, which is generally seen as a healthy financial position.


What is considered a healthy debt to equity ratio for a company?

A healthy debt to equity ratio for a company is typically around 1:1 or lower. This means that the company has roughly the same amount of debt as it does equity, indicating a balanced financial structure.


What is considered a good debt to equity ratio percentage for a company?

A good debt to equity ratio percentage for a company is typically around 1:1 or lower. This means that the company has an equal amount of debt and equity, which indicates a balanced financial structure.


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.


If a company has an equity multiplier of 2.4 what is its debt ratio?

1.4


What is a good equity ratio and how does it impact a company's financial health?

A good equity ratio is typically around 0.5 to 0.7, indicating that a company has a healthy balance between debt and equity. A higher equity ratio means the company relies less on debt financing, which can reduce financial risk and increase stability. It shows that the company has a strong financial foundation and is less vulnerable to economic downturns.