ory Bookmarks People Window Help 18 00 x Debt 2l.arizona.edu/d2/lms/quizzing/use

Question

ory Bookmarks People Window Help 18 00 x Debt 2l.arizona.edu/d2/lms/quizzing/user/attempt/quiz start frame.d2170u-6909168isprv&drc0&qin 422679&cfql-08dnb- to equity ratio - exp G how to compute roe-Goo x Order Confirmation-Chec xTeam Douglas E ANIONAY FIN 412 FA18 001-2 Content Classlist Discussions Assignments Grades Quizzes UA Tools Library Tools Homework 4 Griffin Douglas: Attempt 1 ed Question 4 (0.12 points) If the Debt/Equity ratio is less than 1, the firm is: Primarily financed by assets Primarily financed by debt Primarily financed by equity Equally financed by equity and debt Save Question 5 (0.13 points) Sales: $40,000

Explanation / Answer

Primarily financed by equity

Debt equity ratio is calculated as debt/ equity. Since the ratio is less than 1 it means, the equity is more than debt.

The ratio cannot tell if the firm is financed primarily by assets. If it was primarily financed by debt, the debt equity ratio will be more than 1. If it was equally financed, the ratio would be 1.

Related Questions

Navigate

• Browse (All)
• Browse O
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.