Question
In: Accounting
What does a strong equity ratio indicate? A. A high percentage of total assets are financed...
What does a strong equity ratio indicate?
-
A. A high percentage of total assets are financed by liabilities or debt as opposed to shareholders or owner’s equity.
-
B. A company has a strong cash position.
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C. A high percentage of total assets are financed by shareholders or owner’s equity as opposed to liabilities or debt.
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D. Investors are willing to pay a higher share price for every dollar in earnings per share.
Solutions
Expert Solution
Answer is C. A high percentage of total assets are financed by shareholders or owner’s equity as opposed to liabilities or debt.
This shows that company has lower financial risk
ekkarill92 answered 2 years agoRelated Solutions
If the company's return on total assets = -0.4, what does it indicate?
If the company's return on total assets = -0.4, what does it
indicate?
Why are loans such a high percentage of total assets at the typical bank? What four...
Why are loans such a high percentage of total assets at the
typical bank? What four broad classes of loans do banks engage in?
Most non-financial firms would never hold as much of their assets
in safe liquid securities as banks do. Why do banks maintain such a
high percentage of investment in securities?
Company has debt-to-total assets ratio is 0.4. What is its debt to equity ratio
Company has debt-to-total assets ratio is 0.4. What is its debt
to equity ratio
13) Fund Management Efficiency Ratio = Total Assets/Total Equity Capital a) explain the ratios and what...
13) Fund Management Efficiency Ratio = Total
Assets/Total Equity Capital
a) explain the ratios and what happened from 2017 to 2019
2019
RM’000
2018
RM’000
2017
RM’000
Total Asset
42,429,819
49,130,609
48,972,650
Total Equity
8,412,097
7,920,944
7,504,447
Fund Management Efficiency Ratio
42,429,8198,412,097x 100%
= 504.39%
49,130,6097,920,944x 100%
= 620.26%
48,972,6507,504,447x 100%
= 652.58%
Isolation Company has debt-equity ratio of 0.7. Return on Assets is 9% and total equity is...
Isolation Company has debt-equity ratio of 0.7. Return on Assets
is 9% and total equity is 511,312. What is the Net Income
QUESTION: The financial leverage multiplier is the ratio of the firm's total assets to stockholders' equity....
QUESTION:
The financial leverage multiplier is the ratio of the firm's total
assets to stockholders' equity.
ANSWER OPTIONS:
True
False
Please specifically state IN THE SUBJECT LINE if the
answer is TRUE or FALSE. Further, discussions should not
simply be a restatement of other comments made by students who have
previously posted. It is also important to know that if students
include the question in their answer response, they should be aware
that said text will NOT be included in...
QUESTION: The financial leverage multiplier is the ratio of the firm's total assets to stockholders' equity....
QUESTION: The financial leverage multiplier is the ratio of the
firm's total assets to stockholders' equity.
ANSWER OPTIONS: True False You need to specifically state IN THE
SUBJECT LINE if the answer is TRUE or FALSE.
EXAMPLES OF INADEQUATE RESPONSES: “I think the answer is False.”
OR “The correct answer is “C.”
Postings must be no less than 200 words in length to be
considered. Any posting less than 200 words in length will not be
reviewed.
For a levered firm, firm’s assets are financed by equity and debt. That is, ?? =...
For a levered firm, firm’s assets are financed by equity and
debt. That is, ?? = ?? + ?? , where ?? ,?? & ?? represents
asset value, debt value and equity value at time ?. Suppose the
firm makes no dividend payment and has a zero-coupon debt maturing
at time ?. At maturity, if the value of the company asset is
greater than the maturity value of the debt (?? > ??), the
company will simply pay off the...
What is the debt to total assets ratio and what is it used for? What is...
What is the debt to total assets ratio and what is it used
for? What is a current asset? Where do you typically see an asset
and what is it used for? What is the gross margin ratio and what is
it used for? How do you calculate this ratio?
Compare and contrast your answers. What similarities and
differences do you see?
what does the following ratios over a period of three years indicate? 1) total debt ratio...
what does the following ratios over a period of three years
indicate?
1)
total debt ratio indicate
2016 - 1.02
2017- 0.97
2018 - 0.96
2) long term debt ratio
2016 - 0.47
2017 - 0.53
2018 - 0.51
3) operation cash flow ratio
2016 - 0.82
2017 - 0.76
2018 - 0.68
4) interest coverage ratio
2016 - 3.77
2017 - 3.49
2018 - 5.06
5) quick ratio
2016 - 0.93
2017 - 1.20
2018 - 1.17
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