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1 to 2 (2 times equity to 1 time debt) is a safe way to go

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18y ago

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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 financing mix?

it is the mix of debt and equity financing for an organization. it means the ratio of debt and equity in the finance of an organization. it may be debt free and full equity financing and vice versa.


The firm's optimal mix of debt and equity is called its?

target capital structure


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 considered a good debt to equity percentage for a company?

A good debt to equity percentage 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 strategies can be implemented to achieve a good debt-to-equity ratio for a company?

To achieve a good debt-to-equity ratio, a company can implement strategies such as increasing profits, reducing expenses, paying off debt, and attracting more equity investments. Balancing debt and equity effectively can help improve financial stability and growth prospects.


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


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 the debt-equity ratio of a company with a weighted average cost of capital of 13 percent a cost of equity of 16.5 percent and a pretax cost of debt of 7 percent with a tax rate of 31 percent?

Company is leaveraged with 30% debt i.e. gearing will be 30% however only managed to form one constraint in the absence of further information. Net cost of debt = 0.07 * (1 - 0.31) = 4.83% Cost of equity = 16.5% WACC = 13% Let Ke be the equity mix and Kd the debt mix (assuming total is 1) So what mix of debt and equity should give us 13% i.e. 16.5Ke + 4.83Kd = 13 Also Ke > 0, Kd > 0 & Ke + Kd = 1 If you plug in 0.70 and 0.30 in above you will get 13