Question
A CFO is trying to determine her firms capital structure. The firm has the following simplified balance sheet: Balance Sheet: Long-term debt: $5,246,184.00 Shareholder Equity:
A CFO is trying to determine her firms capital structure. The firm has the following simplified balance sheet:
| Balance Sheet: | |
|---|---|
| Long-term debt: | $5,246,184.00 |
| Shareholder Equity: | $5,084,981.00 |
An analyst has estimated that the debt trades at 102.00% of book value, while the market to book ratio for the common stock is 1.10. What is the weight in debt for the firm?
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Health Care Finance And The Mechanics Of Insurance And Reimbursement
Authors: Michael K. Harrington
2nd Edition
1284169030, 978-1284169034
