Ask Question
BusinessBusiness
24 January, 22:49

As the debt ratio increases,

1. fewer assets are debt financed

2. more assets are debt financed

3. the ratio of debt to equity increases

4. the ratio of debt to equity decreases

+2
Answers (1)
  1. 25 January, 01:47
    0
    2. more assets are debt financed

    3. the ratio of debt to equity increases

    Explanation:

    We know

    The formula of the debt ratio is presented below:

    Debt ratio = Total debt : Total assets

    where,

    Total debt would be

    = Current liabilities + Long term debt

    And the total assets = Total debt + owner's equity

    So, if the debt ratio is increased so it impacted the more assets for debt-financed plus the debt to equity ratio is also increased.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “As the debt ratio increases, 1. fewer assets are debt financed 2. more assets are debt financed 3. the ratio of debt to equity increases 4. ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
The camp's weighted-average cost of capital is 9%, and Isabelle requires that all new investments generate a return on investment of at least 14%. The camp's current tax rate is 25%.
Answers (1)
From 1973 to 1986, growth in the United States economy was over 33 percent, while the percent growth in United States energy consumption was zero.
Answers (1)
Choose all that apply. Carla has been working at her job for about six months. It will soon be time to complete her first tax return. What should Carla do? Obtain the tax brochure from the IRS and read it.
Answers (1)
How much schooling do you need to become a pediatric nurse?
Answers (1)
Which statement is most likely correct about retirement planning? most retirees don't need to worry about inflation. your living costs will remain constant once you retire. social security will cover most of your expenses.
Answers (1)
New Questions in Business
Xer-wise markets and promotes its products to consumers over the internet. melody and tom are considering a more aggressive approach to generate enthusiasm for the musclemaster over the internet.
Answers (1)
At the beginning of the current year, both Gerald and Nicolas own 50% of Apple Corporation. In July, Gerald sold his stock to Sarah for $110,000.
Answers (2)
The U. S. government pays an economist at the U. S. Department of Commerce $100,000 in salary in 2013. The economist then retires. In 2014, the government pays him $60,000 in Social Security benefits. Which of the following is correct? a.
Answers (1)
What will a decrease in interest rate cause
Answers (1)
Kendra's level of education is a high school diploma. Which careers could she work in? Check all that apply. a. Planning Clerk b. Production Worker c. Mechanical Engineer d. Hand Packer e. Operating Workers f. Industrial Engineering Technician
Answers (2)
Home » Business » As the debt ratio increases, 1. fewer assets are debt financed 2. more assets are debt financed 3. the ratio of debt to equity increases 4. the ratio of debt to equity decreases
Sign Up Forgot Password?