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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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As a new supervisor, you need to introduce yourself to your team of ten employees. the best medium for this type of non-routine
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3 years ago
Start with the beginning balances for these​ T-accounts: Accounts​ Receivable, $100,000​, Allowance for Uncollectible​ Accounts,
iren [92.7K]

Answer:

T-accounts:

The ending balances of Accounts Receivable and Allowance for Uncollectible​ Accounts are:

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and

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Explanation:

Accounts Receivable

Accounts Title           Debit       Credit

Balance                  $100,000

Service Revenue    697,000

Cash                                         $714,000

Uncollectible written off             $8,000

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Allowance for Uncollectible Accounts

Accounts Title                   Debit       Credit

Balance                                            $14,000

Uncollectible written off $8,000

Uncollectible Expense                      11,000

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7 0
3 years ago
An economy has a current inflation rate of 7%. if the central bank wants to reduce inflation to 4% and the sacrifice ratio is 2,
Mrrafil [7]

6%  annual output must be sacrificed in the transition.

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6 0
2 years ago
A 4-unit property has two units rented at $900 per month, and two units rented at $1,200 per month. The vacancy and collection l
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Answer:

NOI = $25,851

Explanation:

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NOI = $50,400 - $3,024 - $21,525 = $25,851

3 0
3 years ago
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