What is a comparable firm ?

1. A comparable firm has to be a

2. A firm in the same industry group

3.A firm listed in the same market

4. A firm with a similar market cap

5. None of the above

6. All of the above

Debt ratio

The firm has a market value of equity of $1 billion and you are computing the debt to capital ratio (D/(D+E)) for the firm. What is the deb to capital ratio?

1. 50%

2. >50%

3. <50%