Tokyu Co. has a WACC of 12 percent. Its debt sells at a yield to maturity of 8 percent and its tax rate is 25 percent. Its cost of equity is 15 percent. What is the company's Debt/Total Assets Ratio?

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter7: Analysis Of Financial Statements
Section: Chapter Questions
Problem 2P: Vigo Vacations has $200 million in total assets, $5 million in notes payable, and $25 million in...
Question
Tokyu Co. has a WACC of 12 percent. Its debt sells
at a yield to maturity of 8 percent and its tax rate is
25 percent. Its cost of equity is 15 percent. What is
the company's Debt/Total Assets Ratio?
Transcribed Image Text:Tokyu Co. has a WACC of 12 percent. Its debt sells at a yield to maturity of 8 percent and its tax rate is 25 percent. Its cost of equity is 15 percent. What is the company's Debt/Total Assets Ratio?
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