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MaRussiya [10]
1 year ago
13

Vigo Vacations has an equity multiplier of 2.5. The company’s assets are financed with some combination of long-term debt and co

mmon equity. What is the company’s debt ratio?
Business
1 answer:
vfiekz [6]1 year ago
5 0

If Vigo Vacations has an equity multiplier of 2.5. The company’s assets are financed with some combination of long-term debt and common equity. The company’s debt ratio is 0.6.

<h3>Debt ratio</h3>

Using this formula to determine or find the company debt ratio

TA/TA-DC = 2.5

Where:

TA = Total assets

DC = Debt capital

Hence,

TA/TA-DC = 2.5

TA = 2.5(TA) - 2.5(DC)

2.5(DC) = 1.5(TA)

DC/TA= 1.5/2.5

DC/TA= 0.6

Therefore If Vigo Vacations has an equity multiplier of 2.5. The company’s assets are financed with some combination of long-term debt and common equity. The company’s debt ratio is 0.6.

Learn more about debt ratio here: brainly.com/question/21406342

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from a company's viewpoint, the existence of an active, liquid, well-organised market in existing shares:
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From a company's viewpoint, the existence of an active, liquid, well-organized market in existing shares A. facilitates the raising of further capital in the secondary market.

<h3>What is a secondary market?</h3>

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The types of secondary markets include:

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<h3>Answer Options:</h3>

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C. encourages successful primary market issues.

D. is of little or no consequence.

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