Last year K. Billingsworth & Co. had earnings per shareof $4 and dividends per share of $2. Total retained earnings increased by $12 millionduring the year, while book value per share at year-end was $40. Billingsworth has nopreferred stock, and no new common stock was issued during the year. If its year-endtotal debt was $120 million, what was the company’s year-end total debt to total capitalratio?
Last year K. Billingsworth & Co. had earnings per shareof $4 and dividends per share of $2. Total retained earnings increased by $12 millionduring the year, while book value per share at year-end was $40. Billingsworth has nopreferred stock, and no new common stock was issued during the year. If its year-endtotal debt was $120 million, what was the company’s year-end total debt to total capitalratio?
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter3: Review Of A Company's Accounting System
Section: Chapter Questions
Problem 9RE: For the current year, Vidalia Company reported revenues of 250,000 and expenses of 225,000. At the...
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Last year K. Billingsworth & Co. had earnings per share
of $4 and dividends per share of $2. Total
during the year, while book value per share at year-end was $40. Billingsworth has no
preferred stock, and no new common stock was issued during the year. If its year-end
total debt was $120 million, what was the company’s year-end total debt to total capital
ratio?
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