The book value of SA Ornirat’s equity is 106,000 euros, with a ACB of 3. The company’s cash position is 84,000 euros and its financial and banking debt is 410,000 euros. What is its market value leverage based on net financial debt?

The book value of SA Ornirat’s equity is 106,000 euros, with a ACB of 3. The company’s cash position is 84,000 euros and its financial and banking debt is 410,000 euros. What is its market value leverage based on net financial debt?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

The book value of SA Ornirat’s equity is 106,000 euros, with a ACB of 3. The company’s cash position is 84,000 euros and its financial and banking debt is 410,000 euros.

What is its market value leverage based on net financial debt?

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