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A firm has a debt-to-equity ratio of 0.45 and a market-to-book ratio of 2.5. What is the ratio of the book value of debt to the market value of equity?

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 24MCQ: When analyzing a companys debt to equity ratio, lithe ratio has a value that is greater than one,...

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Please provide answer the financial accounting question not use ai and chatgpt

A firm has a debt-to-equity ratio of 0.45 and a
market-to-book ratio of 2.5. What is the ratio of
the book value of debt to the market value of
equity?

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