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,...
icon
Related questions
Question

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?
Transcribed Image Text: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?
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage
Entrepreneurial Finance
Entrepreneurial Finance
Finance
ISBN:
9781337635653
Author:
Leach
Publisher:
Cengage