Problemsome companies debt-equity targets are expressed not, Ask an Expert

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Problem:

Some companies debt-equity targets are expressed not as a debt ratio, but as a target debt rating on a firm outstanding bonds.

Required:

Question: What are the pros and cons of setting a target rating, rather than a target ratio?

Note: Please explain comprehensively and give step by step solution.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91148010

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