Pat Owens owns and operates Zest Bicycles of America. He has $325,000 of his own money in the business as equity capital, but because of the use of debt, the total value of his stores is $945,000. Calculate the corporation s leverage factor.
Pat Owens owns and operates Zest Bicycles of America. He has $325,000 of his own money in the business as equity capital, but because of the use of debt, the total value of his stores is $945,000. Calculate the corporation s leverage factor.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Pat Owens owns and operates Zest Bicycles of America. He has $325,000 of his own money in the business as equity capital, but because of the use of debt, the total value of his stores is $945,000. Calculate the corporation s leverage factor.
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