Key figures for Apple and Google follow.
Required
1. Compute the debt-to-equity ratios for Apple and Google for both the current year and the prior year.
2. Use the ratios from part 1 to determine which company’s financing structure is least risky.
3. Is its debt-to-equity ratio more risky or less risky compared to the industry (assumed) average of 0.5 for (a) Apple and (b)Google?
Data from Apple’s
Data from Google’s
