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Author Question: How is the debt-to-equity ratio used in evaluating the financial condition of a company? What ... (Read 122 times)

tfester

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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

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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.


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