Most Companies Use a Combination of Debt and Equity to Obtain

question 58

Essay

Most companies use a combination of debt and equity to obtain the assets needed to fund their operations.Two leverage ratios are the debt ratio and the debt-to-equity ratio.What do each of these measures show, and how are they each calculated?

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Definitions:

Individual Productivity

The amount of output or work a single person can produce in a given timeframe.

Group Polarization

A group's propensity to opt for decisions that are more pronounced in extremity than the early tendencies of its members.

Acquittal

A legal judgment that a person is not guilty of the crime with which they have been charged.

Favor

An act of kindness beyond what is due or usual.