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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?

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Expert Solution

Q14:

total debt ratio = total debt / total assets

Microsoft

total debt ratio = 78,366,000 / 286,556,000 = 27.35%

Target

total debt ratio = 13,974,000 / 42,779,000 = 32.67%

Citi

total debt ratio = 293,809,000 / 1,951,158,000 = 15.06%

jeff jeffy answered 1 year ago
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