Rio Tinto's Debt to Equity Ratio Is

question 2

Multiple Choice

Rio Tinto's debt to equity ratio is .54 while David Jone's is .68. By comparing these ratios we can conclude

• A) that David Jones is in danger of bankruptcy.
• B) very little because the firm's are in different industries.
• C) that Rio Tinto uses too little debt financing.
• D) that David Jones uses too little equity financing.

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Definitions:

Real Outputs

Refers to the actual goods and services produced by an economy, as measured without inflation.

Absolute Income Gap

The absolute difference in income levels between individuals, groups, or countries.

Per Capita Incomes

An average amount of money earned per person in a certain area, calculated by dividing the total income of a region by its population.

U.S. Aid Programs

Initiatives provided by the United States government intended to help other countries in terms of economic development, health care, infrastructure, and education.