Solved

If a Firms' Debt to Income Ratio Is 4 and Their

Question 28

Short Answer

If a firms' debt to income ratio is 4 and their total debt is $250,000. What is their total equity? What does this ratio mean for the company? Is this a high or low risk company? Explain your reasoning.

Correct Answer:

verifed

Verified

$62,500
Explenation: For every...

View Answer

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents