Here is a simplified balance sheet for Epicure Pizza (figures in $ millions): Assets Current assets $ 96 Liabilities and Shareholders' Equity Current liabilities $ 100 Fixed assets 53 Long term debt 19 Total $ 149 Equity Total 30 $ 149 Note: There are 15 million shares outstanding. Epicure shares are currently priced at $10 each. a. What value should be used for debt when calculating the firm's WACC? Note: Enter your answer in millions. b. Since Epicure issued its debt, interest rates have fallen substantially. Do you need to revise your measure of the debt ratio upward or downward? a. Debt figure b. Do you need to revise your measure of the debt ratio upward or downward? million

Here is a simplified balance sheet for Epicure Pizza (figures in $ millions): Assets Current assets $ 96 Liabilities and Shareholders' Equity Current liabilities $ 100 Fixed assets 53 Long term debt 19 Total $ 149 Equity Total 30 $ 149 Note: There are 15 million shares outstanding. Epicure shares are currently priced at $10 each. a. What value should be used for debt when calculating the firm's WACC? Note: Enter your answer in millions. b. Since Epicure issued its debt, interest rates have fallen substantially. Do you need to revise your measure of the debt ratio upward or downward? a. Debt figure b. Do you need to revise your measure of the debt ratio upward or downward? million

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 30BEB: Klynveld Companys balance sheet shows total liabilities of 94,000,000, total stockholders equity of...

See similar textbooks

Similar questions

Here is a simplified balance sheet for Epicure Pizza (figures in $ millions): Assets Liabilities and Shareholders' Equity Current assets $ 120 Current liabilities $ 160 Fixed assets 118 Long term debt 28 Equity 50 Total $ 238 Total $ 238 Note: There are 10 million shares outstanding. Epicure shares are currently priced at $8 each. a. What value should be used for debt when calculating the firm's WACC? (Enter your answer in millions.)
What is the company's Debt to equity ratio on these general accounting question?
Capital Structure. Here is a simplified balance sheet for Epicure Pizza (figures in $ millions): Assets Liabilities and Shareholders’ Equity Current assets $80 Current liabilities $60 Fixed assets 125 Long-term debt 65 Equity 80 Total $205 Total $205 Note: There are 16 million shares outstanding.Epicure shares are currently priced at $12 each. (LO13-3) You wish to calculate Epicure’s WACC. What is the relevant figure for the company’s debt ratio? You now realize that since Epicure issued its debt, interest rates have fallen substantially. Do you need to revise your measure of the debt ratio upward or downward?
Klynveld Companys balance sheet shows total liabilities of 94,000,000, total stockholders equity of 75,000,000, and total assets of 169,000,000. Required: Note: Round answers to two decimal places. 1. Calculate the debt ratio. 2. Calculate the debt-to-equity ratio.
Ernst Companys balance sheet shows total liabilities of 32,500,000, total stockholders equity of 8,125,000, and total assets of 40,625,000. Required: Note: Round answers to two decimal places. 1. Calculate the debt ratio. 2. Calculate the debt-to-equity ratio.
Consider this simplified balance sheet for Geomorph Trading: Current assets $ 350 Current liabilities $ 310 Long-term assets 700 Long-term debt 180 Other liabilities 70 Equity 490 $ 1,050 $ 1,050 Required: What is the company’s debt-equity ratio? Note: Round your answer to 2 decimal places. What is the ratio of total long-term debt to total long-term capital? Note: Round your answer to 2 decimal places. What is its net working capital? What is its current ratio?
How do I solve this?
Please help me with show all calculation thanku
Here is a simplified balance sheet for Caterpillar Tractor: Caterpillar Tractor Balance Sheet ($ in millions) Current liabilities 46,838 Long-term debt Current assets $42,527 Long-term assets Total $89,365 Total Market value Market value added Other liabilities Equity Caterpillar has 660 million shares outstanding with a market price of $86 a share. a. Calculate the company's market value added. (Enter your answers in millions.) Market-to-book ratio Yes O No GA $ GA $29,752 27,755 14,323 17,535 $89,365 b. Calculate the market-to-book ratio. (Round your answer to 2 decimal places.) million million c. Has the company created value for shareholders?
Barger Corporation has the following data as of December 31, 2024: Total Stockholders' Equity Total Current Liabilities Total Current Assets $ 36,210 58,200 181,630 Other Assets Long-term Liabilities Property, Plant, and Equipment, Net Compute the debt to equity ratio at December 31, 2024. (Round your answer to two decimal places, X.XX.) = = C $? 45,600 269,640 Debt to equity ratio
Calculating the Debt Ratio and the Debt-to-Equity Ratio Ernst Company's balance sheet shows total liabilities of $32,766,300, total stockholders' equity of $8,998,000, and total assets of $41,764,300. Required: 1. Calculate the debt ratio. Round the percentage to two decimal places.fill in the blank 1% 2. Calculate the debt-to-equity ratio. Round to two decimal places.fill in the blank 2
Need help with this general accounting question