Answer:
d) negative cash flow appearing in red font.
Explanation:
Colour coding is a type of excel formatting for financial modelling.
Color coding allows anyone to immediately pick up your model and know what can be changed (assumptions) and what should not be altered (formulas).
Example:
negative cash flow (Cash outflow) of the company appears in red font while positive cash flow (Cash inflow) of the company appears in green font.
It would actually be an increased production by the business.
Haha, I had to think for a tiny bit and re-check my answer to make sure it was right before giving it. Would hate to see you get it wrong.
Answer:
Explanation highest paying
:
(A) Debt ratio = 0.32
Debt/(debt + equity)= 0.32
Debt = 0.32 *Debt + 0.32 *Equity
0.68* Debt = 0.32* Equity
Debt = 0.32*Equity/0.68 = 0.32/0.68 * Equity
Debt /equity ratio = (0.32/068*Equity)/Equity
Debt/Equity ratio = 0.32/0.68 = 0.47
Debt-equity ratio = 0.47 (Rounded to 2 decimals)
(B) Equity multiplier = 1 + debt -equity = 1+0.47 = 1.47
Equity multiplier = 1.47 (Rounded to 2 decimals)
