A firm has a debt-to-equity ratio of 0.70 and a market-to-book ratio of 2. 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 19MCQ
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A firm has a debt-to-equity ratio of 0.70
and a market-to-book ratio of 2. 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 0.70 and a market-to-book ratio of 2. What is the ratio of the book value of debt to the market value of equity?
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