58 A e) f) 8) B C D Calculate the debt to equity ratio for both companies at the end of 2024. Long-term liabilities Less: cash Net debt Debt-to-equity (D/E) = Long-term liabilities. Less: cash Net debt Add: equity Total capitalization UCW Brewery Ltd. 2024 Net debt as a % of total capitalization = $91,900 $103,900 12,000 0.72 Calculate the net debt as a percentage of total capitalization for both companies. $91,900 UCW Brewery Ltd. 2024 $103,900 12,000 51,200 $143,100 64.2% SFU Beer Ltd. 2024 $3,500 E $3,500 $8,000 4,500 0.12 SFU Beer Ltd. 2024 $8000 4,500 17,800 $21,300 16.4% Compare the use of leverage by these companies based on the ratios calculated in parts (e) and (f). G *D/E= * = H Net debt Total sh equity Net debt Total capitaliz'n I J K

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Pls Solve question g
858
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Format Painter
Ready
H
Clipboard
IS
4 A
B
C
D
e) Calculate the debt to equity ratio for both companies at the end of 2024.
Long-term liabilities
Less: cash
Net debt
Debt-to-equity (D/E) =
Long-term liabilities
Less: cash
Net debt
Add: equity
Total capitalization
Net debt as a % of total
capitalization =
for
AP12-1B AP12-14B
Font
Accessibility: Investigate
Type here to search
UCW Brewery Ltd.
2024
$91,900
f) Calculate the net debt as a percentage of total capitalization for both companies.
$103,900
12,000
$91,900
0.72
UCW Brewery Ltd.
2024
(+)
$103,900
12,000
===€ Merge & Center
51,200
$143,100
64.2%
Alignment
O
SFU Beer Ltd.
2024
$3,500
E
$3,500
$8,000
4,500
0.12
SFU Beer Ltd.
2024
8) Compare the use of leverage by these companies based on the ratios calculated in parts (e) and (f).
$8000
4,500
17,800
$21,300
16.4%
V
F
F
Number
+0.00
G
5
Conditional Format as Cell
Formatting Table Styles -
Styles
*D/E=
V
H
Net debt
Total sh equity
Net debt
Total capitaliz'n
1
Insert Delete Format
J
Cells
K
E
Marke
Transcribed Image Text:858 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 Format Painter Ready H Clipboard IS 4 A B C D e) Calculate the debt to equity ratio for both companies at the end of 2024. Long-term liabilities Less: cash Net debt Debt-to-equity (D/E) = Long-term liabilities Less: cash Net debt Add: equity Total capitalization Net debt as a % of total capitalization = for AP12-1B AP12-14B Font Accessibility: Investigate Type here to search UCW Brewery Ltd. 2024 $91,900 f) Calculate the net debt as a percentage of total capitalization for both companies. $103,900 12,000 $91,900 0.72 UCW Brewery Ltd. 2024 (+) $103,900 12,000 ===€ Merge & Center 51,200 $143,100 64.2% Alignment O SFU Beer Ltd. 2024 $3,500 E $3,500 $8,000 4,500 0.12 SFU Beer Ltd. 2024 8) Compare the use of leverage by these companies based on the ratios calculated in parts (e) and (f). $8000 4,500 17,800 $21,300 16.4% V F F Number +0.00 G 5 Conditional Format as Cell Formatting Table Styles - Styles *D/E= V H Net debt Total sh equity Net debt Total capitaliz'n 1 Insert Delete Format J Cells K E Marke
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