1)Which of the following measures both the amount of a firm's debt financing and its equity financing?

Return on owners' equity

Debt to equity ratio

Times interest earned ratio

Return on common stockholders' equity

2) When a company borrows more money how are the debt to equity and return on equity affected assuming income before interest and taxes remain the same?

Debt to Equity Return on Equity

Increases Increases

Decreases Decreases

Decreases Increases

Increases Decreases

C

D

A

B