estion 36 5 points Save Answe Watson Jean Co sels a variety

estion 36 5 points Save Answe Watson Jean Co, sels a variety of jeans ranging from skinny jeans to dad jeans. The firm has an equity multiplior of 4. Find how much debt they use in their capital structure by inding its debt ratio (hint: the balance sheet must balance). 25% 50% -..65%

Solution

Question 36 : Debt they use in the capital structure is 1/4 i.e., 0.25 or 25% will be debt structure.

Question 33 : Spontaneously generated funds are generally defined as funds that arise out of normal business operations from its suppliers and the government and they include spontaneous increases in account payable and accruals. these are the funds which are raised from externally non-spontaneous sources.

question 32: The additional fund increases with the increase of dividend pay out ratio of the company. therefore the option is The company increases the dividend payout ratio.