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
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
Problem 1PS
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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
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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
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+0.00
G
5
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Formatting Table Styles -
Styles
*D/E=
V
H
Net debt
Total sh equity
Net debt
Total capitaliz'n
1
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J
Cells
K
E
Marke
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