Principles of Managerial Finance

(Dana P.) #1
CHAPTER 12 Leverage and Capital Structure 557

Remember to check the book’s Web site at
http://www.aw.com/gitman
for additional resources, including additional Web exercises.


  1. Which of the companies have high debt/equity ratios?

  2. Which of the companies have low debt/equity ratios?

  3. Why do the companies that have a low debt/equity ratio use more equity
    even though it is more expensive than debt?

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