I need help with question solution Kaye's Kitchenware has a market/book ratio equal to 1,200.The firm's stock price is 12.30 USD/share. There are 4.60million shares outstanding. The firm's total capital is 111million and the firm finances with only debt and commonequity. Calculate the debt to equity ratio."

Step 1: Total book value = Number of shares outstanding * Price per share = 4.60 * $12.30 = $56.58…

Answered: Kaye's Kitchenware 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 20P

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Kaye's Kitchenware has a market/book ratio equal to 1,200. The firm's stock price is 12.30 USD/share. There are 4.60 million shares outstanding. The firm's total capital is 111 million and the firm finances with only debt and common equity. Calculate the debt to equity ratio."