Jones Electronics has a market/book ratio equal to 1. Its stock price is $20 per share and it has 5 million shares outstanding. The firm's total capital is $150 million, and it finances with only debt and common equity. What is its debt-to-capital ratio? Round the answer to two decimal places.

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter3: Evaluation Of Financial Performance
Section: Chapter Questions
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Jones Electronics has a market/book ratio equal to 1. Its stock
price is $20 per share and it has 5 million shares outstanding.
The firm's total capital is $150 million, and it finances with
only debt and common equity. What is its debt-to-capital
ratio? Round the answer to two decimal places.
Transcribed Image Text:Jones Electronics has a market/book ratio equal to 1. Its stock price is $20 per share and it has 5 million shares outstanding. The firm's total capital is $150 million, and it finances with only debt and common equity. What is its debt-to-capital ratio? Round the answer to two decimal places.
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