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Calculations are already done just needing the 3 questions answered below the Calculations that are unanswered. 8. Calculate the company's debt to equity ratio for
Calculations are already done just needing the 3 questions answered below the Calculations that are unanswered.
8. Calculate the company's debt to equity ratio for both this year and the prior year. Show your computations. This year: Total liabilities Total equity = 3,565,218 = 1.70 2,095,228 Last year: = 840,924 = .43 1,937,741 Explain what information this ratio provides. Use complete sentences. The debt-to-equity ratio shows the proportion of equity and debt a company is using to finance its assets and signals the extent to which shareholders's equity can fulfill obligations to creditors, in the event of a business decline. Has the ratio improved or worsened? Explain. Use complete sentences. Is the company financed primarily with debt or equity? Explain using the information obtained in your research and analysis. Is the debt primarily short-term or long-term? ExplainStep by Step Solution
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