In: Finance
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?
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%