Answer:
Outstanding debt = $4,915,625
Explanation:
Since the debt capital ratio 44%, then the equity/ capital ratio is 56% i.e (100% -44%)
<em>The total value of stock = Book value per share × outstanding capital</em>
= $22.75 × 275,000 = $6,256,250.
The total value of equity = 56% × total value of assets
$6,256,250. = 56% × y
6,256,250/56% = y
11,171,875 = y
<em>Total value of assets = $11,171,875 </em>
Debt outstanding = debt/capital ratio × Assets
= 44% × $11,171,875
= $4,915,625