Real Estate Research Paper Sample
The ratios of these five real estate firms represent the measure of the degree or extent of financial leverage that a firm may seek to utilize. It can be defined as the ratio that exists amid the sum of liabilities, as well as equity of the shareholders’. One must know and grasp that even though the expressions debt, together with liabilities may be utilized interchangeably. There are certain key variations between the two terms. These variations led to the uprising of popular discrepancies of the formula (Fattah, 2012). In general, a person may say that these five companies possess a high ratio, and could find it quite difficult to avert insolvency in the scenario of being incapable of paying back the interest accrued on the loan, or release their financial duties. Continue reading