Hello tutor please provide this question solution general accounting TechStar Inc. has assets with a market value of $600 million,including $80 million in cash. It has outstanding debt with a marketvalue of $200 million, and 25 million shares outstanding. Assumingperfect capital markets, if the company pays out the $80 million incash as a dividend, calculate its debt-to-equity ratio after thedividend payment.

Step 1:First, calculate the amount of equity after paying the dividend: Market value of equity…

Answered: TechStar Inc. has assets with a market…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter3: Evaluation Of Financial Performance

Section: Chapter Questions

Problem 8P

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