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What is the Debt Ratio? Describe please.
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Q. What do you signify by Cost of Capital? What do you signify by 'Cost of Capital'? What is its meaning and what are the problems in determination of cost of capital? Ans.
Debt ratio A ratio that points out what proportion of debt a company has relative to its assets. The measure gives a thought to the leverage of the company with the potential risks the company faces in terms of its debt-load. Debt Ratio = Total Debt / Total Assests
Debt ratio
A ratio that points out what proportion of debt a company has relative to its assets. The measure gives a thought to the leverage of the company with the potential risks the company faces in terms of its debt-load.
Debt Ratio = Total Debt / Total Assests
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