Explain the logic of your analysis in given issue

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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.) Mr. Joseph would like you to do additional analysis. The following is a list of data for the investments. Based on this data:

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

Explain the logic of your analysis.

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

Reference no: EM132004222

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