You compute a real estate development company's debt ratio for years ending December 31, 2012,...

70.2K

Verified Solution

Question

Accounting

You compute a real estate development company's debt ratio for years ending December 31, 2012, 2013, and 2014 to be approximately 44%, 67%, and 90%; respectively. The average industry debt ratio is approximately 54%. Based on the debt ratio information provided would you consider this an A) Low-risk, B) normal-risk or C)High-risk investment?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students