Chunky Cheese Pizza has $61.9 million in bonds payable. The bond indenture states that the debt to equity ratio cannot exceed 3.22. Chunky’s total assets are $201.9 million, and its liabilities other than the bonds payable are $91.9 million. The company is considering some additional financing through leasing. 2. Calculate the debt to equity ratio. (Enter your answers in millions. (i.e., $5,500,000 should be entered as 5.5). Round ratio answer to 2 decimal place.) Debt to Equity Ratio = million million

Chunky Cheese Pizza has $61.9 million in bonds payable. The bond indenture states that the debt to equity ratio cannot exceed 3.22. Chunky’s total assets are $201.9 million, and its liabilities other than the bonds payable are $91.9 million. The company is considering some additional financing through leasing. 2. Calculate the debt to equity ratio. (Enter your answers in millions. (i.e., $5,500,000 should be entered as 5.5). Round ratio answer to 2 decimal place.) Debt to Equity Ratio = million million

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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