Use the information that follows taken from Carter Company's financial statements for the years ending December 31, 2010 and 2009 to answer problems 3 through 9.

-The industry in which Carter is a member has an average debt/equity ratio of 0.83. Determine if, as measured by the debt/equity ratio on December 31, 2010, Carter is taking full advantage of investing borrowed capital in its operations relative to that of the average firm in its industry. Explain.

Question

Use the information that follows taken from Carter Company's financial statements for the years ending December 31, 2010 and 2009 to answer problems 3 through 9.
 
-The industry in which Carter is a member has an average debt/equity ratio of 0.83. Determine if, as measured by the debt/equity ratio on December 31, 2010, Carter is taking full advantage of investing borrowed capital in its operations relative to that of the average firm in its industry. Explain.

Quizplus · Accepted Answer

The Answer of Use the information that follows taken from Carter Company's financial statements for the years ending December 31, 2010 and 2009 to answer problems 3 through 9.
 
-The industry in which Carter is a member has an average debt/equity ratio of 0.83. Determine if, as measured by the debt/equity ratio on December 31, 2010, Carter is taking full advantage of investing borrowed capital in its operations relative to that of the average firm in its industry. Explain.

Use the Information That Follows Taken from Carter Company's Financial