Homework Answers
Your required answer is Option B i.e. Minimum Debt to Equity
Explanation:
When an borrower take a loan then they promise that they will maintain some financial ratio (that may be below or above) during the loan period. and Minimum Debt to Equity is an example of Covenant in the loan Agreement, It means that there is a provision in the loan agreement which is accepted by borrower that they will maintain Minimum Debt to Equity Ratio (specified in loan agreement) during this borrowing period.
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2) the debt to equity ratio
3) the gross margin percentage
4) the return on total assets (total assets at the beginning
of last hear were 13,070,000)
5) the return on equity(stockholders equity at the beginning
of last year totaled 7,990,250)
no change in common stock over two years
6) ks the companys financial leverage positive ir
negative?
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