Home » Finance for Everyone: Debt » When a firm is determining its target debt ratio, which of the following is paramount? When a firm is determining its target debt ratio, which of the following is paramount? 1. Question 1 When a firm is determining its target debt ratio, which of the following is paramount? 1 point The impact on the firm’s profits The impact on the value of the firm The impact on the control structure and governance The impact on financial flexibility All of the above are equally important Other Questions Of This Category If a firm has a debt to equity ratio of 50%, its overall debt ratio must be:Which of the following is true about government debt?Miller and Modigliani’s nobel prize winning framework provides all of the following insights, except:Considering “Indifference analysis”, which indicates the level of operating income (or earnings before interest and tax, EBIT) where EPS (earnings per share) are equal whether the firm uses…Which of the following factors influence how much debt a firm should take on?Assume a firm earns net income of $10,000 with total assets of $200,000 - half of which is debt - and has 20,000 shares outstanding. Based on this information, its EPS (earnings per share),…Which of the following statements about financial literacy is true?Access to borrow more is not a “free lunch”. This statement implicates which of the following?Which of the following statements are true concerning borrowing decisions?Governments borrow because:What is an example of a revolving credit arrangement?Which of the following factors almost always explain most market crashes?Except for one, all of the following institutions enable other governments to borrow more at a lower cost than they would have on their own:What are some of the ways governments who have borrowed too much can resolve this problem?What are some of the signs suggesting that developed countries have borrowed too much money?
