Santa Appliances Inc. has a market/book ratio equal to 1. Its stock price is $18 per share, and it has 6.3 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.)

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter3: Evaluation Of Financial Performance
Section: Chapter Questions
Problem 8P
icon
Related questions
Question

What is its debt to capital ratio of this financial accounting question?

Santa Appliances Inc. has a market/book ratio equal to 1. Its stock
price is $18 per share, and it has 6.3 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.)
Transcribed Image Text:Santa Appliances Inc. has a market/book ratio equal to 1. Its stock price is $18 per share, and it has 6.3 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.)
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT