Q What conclusions about how the business is financed can be drawn from the composition of the organization’s capital? Based upon the defined capital structure, assess the risks facing the entrepreneur responsible for this business because of the capital structure. What can one conclude about the business’s financing based on the composition of the organization’s capital? To aid your analysis of capital structure, access the balance sheet for this discussion, and compute the debt to equity ratio as follows: • Add (current portion of long-term debt) + (long-term debt net of current portion) to obtain long-term debt. • Debt-to-equity ratio = Long-term debt/total shareholders’ equity. • Use the computed ratio to respond to the above questions. Offer a link to a video or an article that supports your analysis and conclusions
View Related Questions