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CAPITAL STRUCTURE D/E (or TL/TE) Industry .60 Starbucks 1.20 D/A (or TL/TA) .50 0.70 CD/TD (or Current L/Total L) .40 .50 Step 1. Circle which

CAPITAL STRUCTURE

D/E (or TL/TE)

Industry

.60

Starbucks

1.20

D/A (or TL/TA)

.50

0.70

CD/TD (or Current L/Total L)

.40

.50

Step 1. Circle which ratio is better, either the industry or Starbucks. Step 2. Provide a very brief explanation for which you think is best.

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