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Use the ratios in the picture to answer questions 1C, 1D and 1E 1C. What does the Debt-to-Equity ratio tell us about a company's capital
Use the ratios in the picture to answer questions 1C, 1D and 1E
1C. What does the Debt-to-Equity ratio tell us about a company's capital structure? Does either company rely too heavily on debt (liabilities)? Why is this not always a bad thing? (You will have to Google this). 1D. What does this ratio tell us? Which company is performing better in this category? 1E. What is solvency? (More specifically, how does it differ from liquidity?). Based on the three ratios listed above (Debt-to-Assets, Debt-to-Equity and Times Interest Earned), which company do you believe is more solvent? On what do you determine yourStep by Step Solution
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