(Related to Checkpoint 4.2) (Capital structure analysis) The liabilities and owners' equity for Campbell Industries is found here: a. What percentage of the firm's assets does the firm finance using debt (liabilities)? b. If Campbell were to purchase a new warehouse for $1.5 million and finance it entirely with long-term debt, what would be the firm's new debt ratio? a. What percentage of the firm's assets does the firm finance using debt (liabilities)? The fraction of the firm's assets that the firm finances using debt is%. (Round to one decimal place.) Data Table Accounts payable $517,000 Notes payable $255,000 Current liabilities $772,000 $1,130,000 Long-term debt Common equity Total liabilities and equity (Click on the icon e in order to copy its contents into a spreadsheet.) $5,171,000 $7,073,000

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
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(Related to Checkpoint 4.2) (Capital structure analysis) The liabilities and owners' equity for Campbell Industries is found here:
a. What percentage of the firm's assets does the firm finance using debt (liabilities)?
b. If Campbell were to purchase a new warehouse for $1.5 million and finance it entirely with long-term debt, what would be the firm's new debt ratio?
a. What percentage of the firm's assets does the firm finance using debt (liabilities)?
The fraction of the firm's assets that the firm finances using debt is %. (Round to one decimal place.)
i Data Table
Accounts payable
$517,000
Notes payable
$255,000
Current liabilities
$772,000
Long-term debt
$1,130,000
Common equity
$5,171,000
Total liabilities and equity
$7,073,000
in order to copy its contents into a spreadsheet.)
(Click on the icon
Transcribed Image Text:(Related to Checkpoint 4.2) (Capital structure analysis) The liabilities and owners' equity for Campbell Industries is found here: a. What percentage of the firm's assets does the firm finance using debt (liabilities)? b. If Campbell were to purchase a new warehouse for $1.5 million and finance it entirely with long-term debt, what would be the firm's new debt ratio? a. What percentage of the firm's assets does the firm finance using debt (liabilities)? The fraction of the firm's assets that the firm finances using debt is %. (Round to one decimal place.) i Data Table Accounts payable $517,000 Notes payable $255,000 Current liabilities $772,000 Long-term debt $1,130,000 Common equity $5,171,000 Total liabilities and equity $7,073,000 in order to copy its contents into a spreadsheet.) (Click on the icon
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