Calculate the debt-to-equity ratio and rank the investments

Assignment Help Managerial Accounting

Reference no: EM132755970

Question - 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. (These are the same companies analyzed in the discussion forum.) The following is a list of data for the investments. Based on this data:

Company	Total Assets	Total Liabilities	Net Income
A	$9,000,000	$2,000,000	$200,000
B	15,000,000	4,000,000	1,000,000
C	8,000,000	4,000,000	250,000
D	18,000,000	6,000,000	1,600,000
E	28,000,000	22,000,000	4,000,000

Required - Calculate the debt-to-equity ratio and rank the investments base on least risky to most risky. Explain the logic of your analysis.

Reference no: EM132755970

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