« previous next »

Author Question: How is the debt-to-equity ratio used in evaluating the financial condition of a company? What ... (Read 31 times)

tfester

  • Hero Member
  • *****
  • Posts: 534
on: Jul 26, 2018
How is the debt-to-equity ratio used in evaluating the financial condition of a company?
 
  What will be an ideal response?

Question 2

What is the purpose of the mission statement and why is it important to the strategic planning process?
 
  What will be an ideal response?


zhanghao

  • Sr. Member
  • ****
  • Posts: 316
Reply #1 on: Jul 26, 2018
Answer to Question 1

The debt-to-equity ratio is a measure of the leverage of the company. It compares the amount of capital provided by creditors to the equity of the company.

Answer to Question 2

The mission statement is used to define why the company exists and what makes it different from other companies in the industry. It is the foundation upon which a strategic plan is developed.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

The longest a person has survived after a heart transplant is 24 years.

Did you know?

Hip fractures are the most serious consequences of osteoporosis. The incidence of hip fractures increases with each decade among patients in their 60s to patients in their 90s for both women and men of all populations. Men and women older than 80 years of age show the highest incidence of hip fractures.

Did you know?

Though “Krazy Glue” or “Super Glue” has the ability to seal small wounds, it is not recommended for this purpose since it contains many substances that should not enter the body through the skin, and may be harmful.

Did you know?

Atropine, along with scopolamine and hyoscyamine, is found in the Datura stramonium plant, which gives hallucinogenic effects and is also known as locoweed.

Did you know?

Sildenafil (Viagra®) has two actions that may be of consequence in patients with heart disease. It can lower the blood pressure, and it can interact with nitrates. It should never be used in patients who are taking nitrates.

Man undergoing a stress test on a treadmill while physician monitors his condition Man undergoing a stress test on a treadmill while physician monitors his condition
Erythroblastosis fetalis. (a) The condition occurs with an RH+ father and RH– mother. (b) First preg Erythroblastosis fetalis. (a) The condition occurs with an RH+ father and RH– mother. (b) First preg
Intussusception. The condition is caused by an infolding of the small intestine, which often causes Intussusception. The condition is caused by an infolding of the small intestine, which often causes
Morris and Company, Sussex Rush-Seated Chairs. Morris and Company, Sussex Rush-Seated Chairs.
Carbon Isotope ratio Carbon Isotope ratio
A company that sells sweatshirts finds that the profit can be modelled by P(s)= ... A company that sells sweatshirts finds that the profit can be modelled by P(s)= ...
Video: The 4 steps of translation Animation

For a complete list of videos, visit our video library