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The liabilities and owners’ equity for Campbell Industries is found here. What percentage of the firm’s assets does the firm now finance using debt (liabilities)? If Campbell were to purchase a new warehouse for $1.4 million and finance it entirely with long-term debt, what would be the firm’s new debt ratio?

The liabilities and owners’ equity for Campbell Industries is found here. What percentage of the firm’s assets does the firm now finance using debt (liabilities)? If Campbell were to purchase a new warehouse for $1.4 million and finance it entirely with long-term debt, what would be the firm’s new debt ratio?

Essentials Of Investments
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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  1. The liabilities and owners’ equity for Campbell Industries is found here.
    1. What percentage of the firm’s assets does the firm now finance using debt (liabilities)?
    2. If Campbell were to purchase a new warehouse for $1.4 million and finance it entirely with long-term debt, what would be the firm’s new debt ratio?
Accounts payable $485,000 Notes payable $245,000 Current liabilities $730,000 Long-term debt Common equity $1,141,000 $4,874,000 Total liabilities and equity $6,745,000 (Click on the icon 9 in order to copy its contents into a spreadsheet.)
Transcribed Image Text:Accounts payable $485,000 Notes payable $245,000 Current liabilities $730,000 Long-term debt Common equity $1,141,000 $4,874,000 Total liabilities and equity $6,745,000 (Click on the icon 9 in order to copy its contents into a spreadsheet.)
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