What is the financial risk of the General Mills (the debt to total capitalization ratio)?

Solutions

Expert Solution

Financial risk of General Mills = Total Long Term debt/( Equity + Long term Debt)

As per data from YAHOO finance Total Long Term debt =12,688,700

Total equity = 6,141,100
Financial risk =12,688,700/(12,688,700+6,141,100)=0.67

jeff jeffy answered 1 year ago

Next > < Previous

Related Solutions

Q14: Compare the financial leverage ( i.e., measured by total debt ratio = total debt /...

Q14: Compare the financial leverage ( i.e., measured by total debt ratio = total debt / total assets) for Microsoft (high-tech), Target (retail) , and Citibank (bank). Q15. How to estimate a firm’s optimal capital structure? Q30: What are accruals? Are a firm’s accruals free or not? Why?

Please find the following ratio for Southwest Airlines Debt ratio = total debt/total assets Indicates what...

Please find the following ratio for Southwest Airlines Debt ratio = total debt/total assets Indicates what percentage of an organizations assets are financed by debt

Prepare the period's financial statements and calculate the following primary financial ratio: Debt Ratio Total Liabilities...

Prepare the period's financial statements and calculate the following primary financial ratio: Debt Ratio Total Liabilities / Total Assets Current Ratio Current Assets / Current Liabilities Working Capital Current Assets - Current Liabilities Assets-to-Equity Ratio Total Assets / Owner's Equity Debt-to-Equity Ratio Total Liabilities / Owner's Equity Nelson Adams and Marina Fedorova started Local Souvenir Inc., on January 1. They were two owners of the corporation. They decided to produce food and drink containers in a birch bark crafts technique...

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?

Company has debt-to-total assets ratio is 0.4. What is its debt to equity ratio

SOLVENCY RATIOS Debt ratio for Walgreens = Total Liabilities / Total assets Debt ratio for Walgreens...

SOLVENCY RATIOS Debt ratio for Walgreens = Total Liabilities / Total assets Debt ratio for Walgreens 2018 = $68,124 / $68,124 = 1 Debt ratio for Walgreens 2017 = $66,009 / $66,009 = 1 Debt ratio for CVS Debt ratio for CVS 2018 = $196,456 / $196,456 = 1 Debt ratio for CVS 2017 = $95,131 / $95,131 = 1 What do the results of this ratio mean in the context of Walgreens? How about CVS? Compare the two -...

Question