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At the end of the current year, the following information is available for both Kumar Company and Asher Company. Kumar Company Asher Company Total assets
At the end of the current year, the following information is available for both Kumar Company and Asher Company. Kumar Company Asher Company Total assets . . . . . . . . . . $2,254,500 $1,123,500 Total liabilities . . . . . . . . 904,500 598,500 Total equity . . . . . . . . . . 1,350,000 525,000 Required 1. Compute the debt-to-equity ratios for both companies. 2. Comment on your results and discuss the riskiness of each company's financing structure.
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