What the means that the jones ltd

Assignment Help Financial Accounting
Reference no: EM133004630

Problem 1: Jones Ltd has a debt-to-equity ratio of 25% compared with the industry average of 20%. This means that the Jones Ltd......

A. has less liquidity than other businesses.

B. has greater than average financial risk when compared to other businesses.

C. will not experience any difficulty with its creditors when compared to other businesses.

D. will be viewed as having high creditworthiness when compared to other businesses.

Problem 2: Which one of the following statements is most likely to be correct?

A. The acquisition of land and building through a mortgage will improve the debt-equity ratio.

B. An improvement of profit margin will improve the debt-equity ratio.

C. A capitalisation issue of shares using retained earnings will improve the debt-equity ratio.

D. A lower debt-equity ratio lowers the protection of creditors.

Reference no: EM133004630

Questions Cloud

Define expenses and give four examples of expenses : What are net assets? Define expenses and give four examples of expenses. Are the expenses in a period the cash outflows in that period? explain.
Discuss if allocated company is a reporting entity : Discuss if your allocated company is a reporting entity, provide specific and detailed examples and factors from your allocated company to support
Port aventuras information system processes : Appraise the problems that the resort is facing at the moment as highlighted by Mercedes de Pablo - Evaluate how do these problems relate to Port Aventuras
Calculate the price of the callable bond : GoGoGUCity Inc. plans to issue a perpetual callable bond that pays 10.24% annual coupons. The current interest rate is 8%. Two years later, there is 28% probabi
What the means that the jones ltd : Jones Ltd has a debt-to-equity ratio of 25% compared with the industry average of 20%. What This means that the Jones Ltd?
What is the annual cost of goods sold : Assume a firm's inventory level of $15,000 represents 40 day's sales. What is the annual cost of goods sold
What is the current share price : Pastaja Inc is a company that produces fireworks. Your friend Bill is looking to purchase the company stock, and wants to know what the current share price is.
How can a voluntary reduction in dividend lead : Your company has decided to distribute all profits in dividends.
What is the payback period of this? project : Your cost of capital is 11.1% and your? company's preferred payback period is three years or less. What is the payback period of this? project

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd