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zysi [14]
3 years ago
13

g Kaye's Kitchenware has a market/book ratio equal to 1. Its stock price is $12 per share and it has 5.2 million shares outstand

ing. The firm's total capital is $120 million and it finances with only debt and common equity. What is its debt-to-capital ratio? Round your answer to two decimal places.
Business
1 answer:
Ede4ka [16]3 years ago
7 0

Answer:

48.00%

Explanation:

For computing the debt to capital ratio, first we have to determine the equity value and debt value which is shown below:

Equity value = Number of outstanding shares × stock price per share

                    = 5.2 million shares × $12

                    = $62.4 million

We know,

Total capital = Debt + equity

$120 million = Debt + $62.4 million

So, the debt would be

= $120 million - $62.4 million

= $57.6 million

Now the debt to capital ratio would be

= $57.6 million ÷ $120 million

= 48.00%

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3 years ago
Shangrilah Sandals is a manufacturing firm in a developing country, where it routinely uses grease payments to local officials t
julia-pushkina [17]

Answer:

b. cultural relativism

Explanation:

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3 years ago
Suppose an individual makes an initial investment of $2,000 in an account that earns 8.4%, compounded monthly, and makes additio
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Answer:

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The correct full sentence is:

Free operant and trial-based are stimulus preference assessment methods, while concurrent schedules and multiple schedules are reinforcer assessment methods.

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