Question
What is the rule of thumb for the-debt-to-total-assets ratio, and what does it mean? a) The debt-to-equity ratio is 45%, which is a satisfactory debt-to-equity
What is the “rule of thumb” for the-debt-to-total-assets ratio, and what does it mean?
a) The debt-to-equity ratio is 45%, which is a satisfactory debt-to-equity ratio.
b) The debt-to-total-assets ratio is 65%, and creditors may not provide more debt financing to the company.
c) The debt-to-total assets ratio is 50%, and creditors will provide more debt financing.
d) The debt-to-total-debt ratio is 50%, and creditors may be reluctant to provide more financing.
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Materials and process in manufacturing
Authors: E. Paul DeGarmo, J T. Black, Ronald A. Kohser
9th edition
471656534, 978-0471033066, 471033065, 978-0471656531
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