Rio Tinto's debt to equity ratio is .54 while David Jone's is .68. By comparing these ratios we can conclude
A) that David Jones is in danger of bankruptcy.
B) very little because the firm's are in different industries.
C) that Rio Tinto uses too little debt financing.
D) that David Jones uses too little equity financing.
Correct Answer:
Verified
Q10: Increases in either interest rates or taxes
Q11: Which one of the following statements is
Q12: The government has an expansionary economic policy
Q13: A company has 2 million shares outstanding.
Q14: The stage in an industry's growth cycle
Q16: The measure that indicates how efficiently assets
Q17: On March 31, Adolpha, Inc. reported
Q18: Generally, the market price of a share
Q19: Cash flow from operations
A) represents the amount
Q20: A company has annual sales of $160
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents