The debt-to-equity ratios for Firm 1, Firm 2, Firm 3, and Firm 4 are 0.2, 0.3, 0.35, and 0.4, respectively. The earnings per share for Firm 1, Firm 2, Firm 3, and Firm 4 are $4, $3, $2.5, and $2, respectively. Everything else equal, which firm is placing more burdens on its borrowing?A. Firm 1.B. Firm 2.C. Firm 3.D. Firm 4.

D. Firm 4.

Explanation:

To determine this, the  debt-to-equity ratio is the relevant measure to use.

The debt-to-equity ratio can be described as a ratio that compares the total debt of company to its total equity.

The debt-to-equity ratio tells us the percentage of the financing of the firm that is obtained from borrowing from creditors and investors.

The debt-to-equity ratio is a ratio that gives an idea of the extent of burden that the company places on its borrowing and the ability of the company to repay its debt in future.

When a company has the highest debt-to-equity ratio compared to other companies, it implies that more financing of the company comes from creditors and bank loans than from the shareholders of the company.

From the question, Firm 4 has the highest debt-to-equity ratio which 0.4. Based on the explanation above, it therefore implies that Firm 4 is placing more burdens on its borrowing.

the answer is true.  i do believe this is the answer because of the amount of wrecks people get into each year.  if you double this with avoiding those so said wrecks, that would make you a "skilled" driver.

they work in some type of way