Equity Dividend Rate: Definition, Formula, Example The Motley Fool
A debt-to-equity ratio that seems too high, especially compared to a company’s peers, might signal to potential lenders that the company isn’t in a good position to repay the debt. The debt-to-equity ratio belongs to a family of ratios that investors can use to help them evaluate companies. If earnings don’t outpace the debt’s cost, then shareholders may lose and stock prices may fall. For example, if a company takes on a lot of debt and then grows very [...]
