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Unformatted text preview: e owners'
Debt to Equity $138,400.00 ÷ $238,000.00 = 58.15% This company's financing is 58.15% debt financing (or with borrowings)
and 41.85% with equity financing ( or with owners). The company
might have difficulty borrowing any additional funds from a bank,
since banks normally like to see the owners having more of the risk
than the lenders and if another loan were added, the debt to equity
ratio would be too high to meet the bank's requirements....
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This document was uploaded on 03/23/2014.
- Fall '14