Question
1-Will this decision result in Excel to be excessively levered if everything else remains unchanged? Knowing that industry average debt/equity ratio is 1. a)Yes, because
1-Will this decision result in Excel to be excessively levered if everything else remains unchanged? Knowing that industry average debt/equity ratio is 1.
a)Yes, because total debt to equity ratio for Excel inc. will be more than the industry average means that this firm has more debt than equity in its capital structure.
b)Yes, because total debt to equity ratio for Excel inc. will be more than the industry average means that this firm has lower debt than equity in its capital structure.
c)No, because total debt to equity ratio for Excel inc. will be lower than the industry average means that this firm has lower debt than equity in its capital structure.
d)No, because total debt to equity ratio for Excel inc. will be higher than the industry average means that this firm has lower debt than equity in its capital structure.
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Financial Markets and Institutions
Authors: Jeff Madura
12th edition
9781337515535, 1337099740, 1337515531, 978-1337099745
