Which two ratios would be most helpful in managing a firm's capital structure?
A) Book Debt to Equity, Current Ratio
B) Debt to Value Ratio and Times Interest Earned
C) Debt to Assets, Profit Margin
D) Payables Turnover, Return on Assets

Question

Quizplus · Accepted Answer

Debt to Value Ratio and Times Interest Earned would be the most helpful in managing a firm's capital structure because they provide information on the amount of debt in proportion to the overall value of the firm, as well as the firm's ability to make interest payments on its outstanding debt. These ratios are important in determining the appropriate level of leverage and interest payments that the firm can handle.

Which Two Ratios Would Be Most Helpful in Managing a Firm's