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Annette [7]
3 years ago
15

If a firm has a debt ratio of 54%, what is the firm's debt to equity ratio?

Business
1 answer:
kolbaska11 [484]3 years ago
3 0

Answer:

If a firm has a debt ratio of 54%, then the firm's debt to equity ratio is 117%

Explanation:

The Debt Ratio is obtained dividing Liabilities / Assets. Then, a result of 54% means that 54% of the asset is composed by liabilities.

<u>Liabilities</u><u>    54 </u>

Assets        100

Debt Ratio= 54%

By the general accounting formula we know that

Assets= Liabilities+Equity.      Then,

Assets(100)=Liabilities(54)+Equity(46)

If the Debt to equity ratio is calculated by the division of liabilities/Equity- Then:

<u>Liabilities      54</u>

Equity           46

Debt to Equity Ratio = 117%

This means that for 1 dollar on the Equity the company has 1 dollar plus 17% or 17 cents on the Liabilities.

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8 0
3 years ago
On July 1, 2008, Blitzer Inc. signed a one-year, 6% interest-bearing note payable for $5,000. Blitzer Inc. has a December 31 yea
marishachu [46]

Answer:

interest expense = $150

Explanation:

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5 0
3 years ago
• Define the mergers and acquisitions of Tesla and define what has the company gained?
iris [78.8K]

Some of the mergers and acquisitions of Tesla company includes:

  • SolarCity
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<h3>What is a Merger?</h3>

This refers to the transfer of ownership between different companies where one company and their operating units are consolidated.

Some of the problems and internal challenges faced by Tesla during these mergers and acquisitions include:

  • They were making too many mergers at the same time
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The size of the market and the growth strategy of Tesla company is:

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Read more about mergers and acquisitions here:
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6 0
3 years ago
Technology combined with rapid international communication of news, entertainment, and lifestyles is dramatically increasing the
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Answer:

True

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at what point described below will producer surplus most likely drop to zero for a firm? a.) when the firm is taking a significa
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(B) When revenue equals opportunity and variable cost, then the producer surplus most likely drops to zero for a firm.

<h3>What is revenue?</h3>
  • The total income derived from the sale of products or services pertaining to a business's core operations is referred to as revenue.
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Therefore, (B) when revenue equals opportunity and variable cost, then the producer surplus most likely drops to zero for a firm.

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