Question

Give an example of a “debt ratio” for a typical local government. Explain why the debt...

Give an example of a “debt ratio” for a typical local government. Explain why the debt might be incurred and the implications if the debt ratio is high or low.

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Debt ratio= total debt / total asset

The debt ratio of National Power Grid Corporation of India Ltd is 2.29,

Debt can be incurred by financing though equity shares,debentures and loans and advances. if working capital management is also missed the debt also incurred there too.

A high debt ratio shows that company are facing the dark stage by more debt ,debt ratio is a solvancy ratio.

A lower debt ratio shows the company is more stable in liability repayment and interest payment back.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Explain how inflation and faster growth might lower Italy’s government debt ratio and why neither is...
Explain how inflation and faster growth might lower Italy’s government debt ratio and why neither is an attractive option.
Why might analysts be concerned if a government has an unusually high ratio of intergovernmental revenues...
Why might analysts be concerned if a government has an unusually high ratio of intergovernmental revenues to total revenues relative to a comparable government? Why might they be concerned if the same ratio is unusually low?
Here's the question: Is the ratio of government debt to GDP a useful indicator of a...
Here's the question: Is the ratio of government debt to GDP a useful indicator of a government’s indebtedness?When could it be misleading? I'm confused with the solution, especially the highlighted sentence: Debt is a stock and a government liability; GDP is a flow and a potential source of tax revenue. The economic variable that connects real stocks and real flows is the real interest rate. If the real interest rate is low then it is possible to service a much...
What is a positive externality? Give an example of one. Explain why your example is an...
What is a positive externality? Give an example of one. Explain why your example is an externality. How does society (via government action) deal with positive externalities?
Describe how government is involved in creating a monopoly. Why might the government create one? Give...
Describe how government is involved in creating a monopoly. Why might the government create one? Give an example.
Question Government deficits and debt. A-Are fiscal deficits and government debt a problem? Why/why not? B-What...
Question Government deficits and debt. A-Are fiscal deficits and government debt a problem? Why/why not? B-What advice would you give a heavily indebted government?
Explain quantitive easing also give an example of why this is a good policy then give...
Explain quantitive easing also give an example of why this is a good policy then give an example of why this could be a bad policy
long-term debt ratio = long-term debt/longterm debt + total equity Why this ratio might be of...
long-term debt ratio = long-term debt/longterm debt + total equity Why this ratio might be of interest to investors or creditors, what this ratio tells us and whether the company is performing better or worse to the prior fiscal year. --> F18 = 42% , F19 = 40%
explain the difference between discretionary and automatic spending by the government. Please give an example of...
explain the difference between discretionary and automatic spending by the government. Please give an example of discretionary spending and automatic spending.
Give an example of a consumption good and an example of an investment good. Explain why...
Give an example of a consumption good and an example of an investment good. Explain why the two are different, as a macroeconomist would think of them differently. Also, explain why investment is important for the long term health of an economy.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT