« previous next »

Author Question: How is the debt-to-equity ratio used in evaluating the financial condition of a company? What ... (Read 119 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?

Colchicine is a highly poisonous alkaloid originally extracted from a type of saffron plant that is used mainly to treat gout.

Did you know?

A serious new warning has been established for pregnant women against taking ACE inhibitors during pregnancy. In the study, the risk of major birth defects in children whose mothers took ACE inhibitors during the first trimester was nearly three times higher than in children whose mothers didn't take ACE inhibitors. Physicians can prescribe alternative medications for pregnant women who have symptoms of high blood pressure.

Did you know?

Though methadone is often used to treat dependency on other opioids, the drug itself can be abused. Crushing or snorting methadone can achieve the opiate "rush" desired by addicts. Improper use such as these can lead to a dangerous dependency on methadone. This drug now accounts for nearly one-third of opioid-related deaths.

Did you know?

More than one-third of adult Americans are obese. Diseases that kill the largest number of people annually, such as heart disease, cancer, diabetes, stroke, and hypertension, can be attributed to diet.

Did you know?

Your skin wrinkles if you stay in the bathtub a long time because the outermost layer of skin (which consists of dead keratin) swells when it absorbs water. It is tightly attached to the skin below it, so it compensates for the increased area by wrinkling. This happens to the hands and feet because they have the thickest layer of dead keratin cells.

On average, the ratio of carbon to nitrogen is much higher in terrestrial plants than in other major On average, the ratio of carbon to nitrogen is much higher in terrestrial plants than in other major
Independent assortment of chromosomes at meiosis explains Mendel’s ratio Independent assortment of chromosomes at meiosis explains Mendel’s ratio
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
Sequential blending uses a computer to calculate the correct ratio as well as the prescribed order ... Sequential blending uses a computer to calculate the correct ratio as well as the prescribed order ...
Debt payments of $1610.00 due today, $725.00 due in 101 days and $670.00 due in 296 days ... Debt payments of $1610.00 due today, $725.00 due in 101 days and $670.00 due in 296 days ...
An organizational specialist is hired as a consultant to a company planning to open a coffee ... An organizational specialist is hired as a consultant to a company planning to open a coffee ...
Video: Primary Active Transport - electrochemical gradient and ion transport / water movement

For a complete list of videos, visit our video library