Question
So experts state that a 'good debt to equity ratio is somewhere between 1.5 - 1 to one. This means for every $1.50 of debt,
So experts state that a 'good debt to equity ratio is somewhere between 1.5 - 1 to one. This means for every $1.50 of debt, there should be $1.00 of equity. This is not a golden rule it is a best judgement of experts for an organization to be viable.
So experts state that a 'good debt to equity ratio is somewhere between 1.5 - 1 to one. This means for every $1.50 of debt, there should be $1.00 of equity. This is not a golden rule it is a best judgement of experts for an organization to be viable.
Examples: Chase bank 1.31 / 1 BOA 1.02 / 1 AMEX 2.66 Remember that debt is the way large organizations are able to invest and grow - the risk though is what accountants are needed for!!! how do you respond to this comment?
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Financial Accounting
Authors: Robert Libby, Patricia Libby, Frank Hodge
9th edition
290-1259222138, 1259222136, 978-1259222139
