Chapter 9, Problem 62BE

Brief ExerciseRatio Analysis

Valiant Corporation has $1,800,000 in total liabilities, $800,000 of which arc current. Valiant has $400,000 of cash and cash equivalents, $300,000 of other current assets, and $2,000,000 in property, plant, and equipment.

Required:

Calculate Valiant’s debt to equity ratio.