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?
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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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?
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