In Scenario 8-2 above,after analyzing the debt ratio,you concluded that
A) Denny has a problem because the number is so low.
B) Denny has a higher risk factor than the industry.
C) Denny has financed 43 percent of the assets with borrowed funds.
D) Denny needs to be concerned about this ratio and increase it in the near future.

Question

Quizplus · Accepted Answer

The debt ratio indicates the proportion of a company's assets that are financed by debt. If Denny's debt ratio is 43%, it means that 43% of the assets are financed with borrowed funds.

In Scenario 8-2 Above,after Analyzing the Debt Ratio,you Concluded That