Question 1
What does the debt/equity ratio measure in a business?
Question 2
If a business has total debt of $80,000$ and shareholders' equity of $200,000$, what is its debt/equity ratio?
Question 3
What does a high debt/equity ratio usually suggest about a business?
Question 4
Why might a business prefer to use debt rather than issue more shares?
Question 5
Which statement best explains a possible advantage of a lower debt/equity ratio?
