Mr. Joseph has identified five different companies in which he is interested in investing, however, he has concerns over the economy and wants to invest in companies with the lowest debt exposure. The following is a list of data for the investments: Company Total Assets Total Liabilities Net Income
A $10,000,000 $1,000,000 $200,000
B 20,000,000 3,000,000 1,000,000
C 6,000,000 4,000,000 250,000
D 15,000,000 6,000,000 1,600,000
E 30,000,000 22,000,000 4,000,000

Required:
Calculate the debt-to-equity ratio and rank the investments base on least risky to most risky.

Answer and Explanation:

The computation is shown below:

Company Total Assets (a)  Total Liabilities (b)   Net Income Debt to assets ratio (a÷b)Rank

A           $10,000,000           $1,000,000          $200,000       0.11

B           $20,000,000          $3,000,000           $1,000,000    0.15    2

C          $6,000,000             $4,000,000          $250,000      0.666667  4

D        $15,000,000             $6,000,000          $1,600,000      0.4           3

E        $30,000,000             $22,000,000       $4,000,000    0.733       5

anyone below or above ambitious can tell you. so crowns mean brainliest. getting brainliest means your answer needs a good explanation and the person asking the question can understand your answer easily. so say there's a multiple choice question. you don't just want to say your answer is a, hope it . provide evidence and reasoning so that they know that that is the correct answer. a good explanation should have evidence, good reasoning, and your opinion on why you picked that. you don't want to look up their question on the internet and see if you can answer it. pick questions that you 100% know the answer to, so than that way you can provide a better explanation.

best of luck,

the divergent