Question
(Please show your work) (A) Compute the debt to equity ratio for each of the five URL companies. The ratio measures how much of the
(Please show your work)
(A) Compute the debt to equity ratio for each of the five URL companies. The ratio measures how much of the company is financed by debt and equity It is computed by dividing the total liabilities by the total stockholders equity, as shown in the balance sheet. . The ratio is very important to creditors (bankers). The lower the debt to equity ratio, the more favorable it is for a company and it raises the probability of borrowing money. When the ratio approaches .50, the lower the probability of borrowing money.
(B) Rank the five companies according to their ability to borrow money.
(Please show your work)
The five corporation URLs:
1- Starbucks
http://s21.q4cdn.com/369030626/files/doc_financials/2016/Annual/FY16-Annual-Report-on-Form-10-K.pdf
2- Boeing Corporation
http://s2.q4cdn.com/661678649/files/doc_financials/annual/2016/2016-Annual-Report.pdf
3- Walmart Corporation
http://s2.q4cdn.com/056532643/files/doc_financials/2016/annual/2016-Annual-Report-PDF.pdf
4- Wells Fargo Bank
https://www08.wellsfargomedia.com/assets/pdf/about/investor-relations/annual-reports/2016-annual-report.pdf
5- Microsoft Corporation
http://www.microsoft.com/investor/reports/ar16/index.html
evrything is here!
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started