Question
You are the accountant for a department store. You have 300M in asset and 45% of that number is your debt. You would like a
You are the accountant for a department store. You have 300M in asset and 45% of that number is your debt.
You would like a loan to buy more denim.
What is your financial leverage ratio?
How much do you need to borrow if you want a leverage ratio of 6?
Would you recomend this action?
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Financial Accounting Reporting And Analysis
Authors: Michael Diamond, James Stice, Earl K. Stice, James D. Stice
5th Edition
0538873019, 978-0538873017
