Respuesta :
Revenue growth can maintain the ratio's stability. As sales rise, you reinvest the money in the business by buying assets or settling debt. By raising equity, this lowers the debt to equity ratio.
The rate of growth of a company's assets and sales should be equal. If the anticipated sources of funding matched the amount needed, there would be no. The will decrease if there is a smaller correlation between any of the impulsive assets and sales. For instance, if the business expands, improved inventory control will lower the inventory to sales ratio and the . The debt-to-equity (D/E) ratio demonstrates how much equity and debt are being used by a company to finance its assets. The D/E ratio indicates how much a shareholder's In the event that a business fails, equity may be used to satisfy debts to creditors. (A) The debt ratio is 0.32, or the debt to equity ratio.
Debt = 0.32* Equity Debt = 0.32* Equity/0.68 = 0.32/0.68 * Equity. Debt = 0.32* Equity.
(0.32/068*Equity)/Equity is the debt to equity ratio.
Ratio of debt to equity: 0.32/0.68 = 0.47
Debt-Equity Ratio (0.47 to two decimal places)
Equity multiplier equals 1 + debt - equity equals 1+0.47 equals 1.47 (B).
Equilibrium multiplier is 1.47. (Rounded to 2 decimals)
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