Jones electronic solutions this accounting questions Jones Electronics has a market/book ratio equal to 1. Its stockprice is $20 per share and it has 5 million shares outstanding.The firm's total capital is $150 million, and it finances withonly debt and common equity. What is its debt-to-capitalratio? Round the answer to two decimal places.

Step 1:First, calculate the total value of equity: Value of equity = Number of shares outstanding *…

Answered: Jones Electronics has a market/book…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter3: Evaluation Of Financial Performance

Section: Chapter Questions

Problem 8P

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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.