A company has a total debt ratio of 0.30. In addition, the company had additions to retained earnings for the year just ended of $500,000, the firm paid out $300,000 in cash dividends, and it has an ending total equity of $5 million. What is its debt-equity ratio?
A company has a total debt ratio of 0.30. In addition, the company had additions to retained earnings for the year just ended of $500,000, the firm paid out $300,000 in cash dividends, and it has an ending total equity of $5 million. What is its debt-equity ratio?
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 50E: Juroe Company provided the following income statement for last year: Juroes balance sheet as of...
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FINANCIAL ACCOUNTING 2
Transcribed Image Text:A company has a total debt ratio of 0.30. In
addition, the company had additions to
retained earnings for the year just ended of
$500,000, the firm paid out $300,000 in cash
dividends, and it has an ending total equity of
$5 million.
What is its debt-equity ratio?
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