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Leverage Ratios: Analyzing Financial Structure

19 August, 2015 - 17:24

The accounting equation expresses a relationship between assets owned by an entity and the claims against those assets. Although shareholders own a corporation, they alone do not finance the corporation; creditors also finance some of its activities. Together, creditor and shareholder capital are said to form the financial structure of a corporation.

At December 31, 2021, the balance sheet of BDCC shows the following financial structure:

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