Financial accounting 16th Edition by Jan Williams,Susan Haka,Mark Bettner ,Joseph Carcello

تمرين 67

Wolfe Company has debt totaling $2,000,000 and total stockholders' equity of $4,200,000.iger Company has debt totaling $3,100,000 and stockholders' equity of $5,000,000.
a.alculate the debt ratio for each company.Hint: You will find an explanation of the debt ratio and how it is computed in Exhibit 10-8.)
b.riefly explain the meaning of the debt ratio.