1.Question 1If a firm has a debt-to-equity ratio of 20%, then a firmborrows $1 for every $____ in equity.

Question 8If a company has $30,000 debt and $60,000 equity, what is its debt to equity ratio?

Question 2If a firm has a debt to equity ratio of 50%, its overall debt ratio must be:1 point33%50%67%100%150%

Which of the following factors influence how much debt a firm should take on?1 pointIndustry normsThe nature of the firm’s assetsFinancial slackThe overall level of interest ratesAll of the above

Question 1When a firm is determining its target debt ratio, which of the following is paramount? 1 pointThe impact on the firm’s profitsThe impact on the value of the firmThe impact on the control structure and governance The impact on financial flexibilityAll of the above are equally important

The debt to equity ratio indicates:The net worth of the companyThe proportion of the company financed by lenders versus ownersA company's working capital funding gapThe liquidity of the company