Current Attempt in Progress The statement of financial position as of December 31, 2020, for Taube Corporation follows: (all amounts in thousands) Assets Current assets Non-current assets $60.000 94,000 Liabilities and Shareholders' Equity Current liabilities $27,000 Long-term liabilities 46,000 Shareholders' equity 81,000 Total liabilities and shareholders' equity $154,000 Total assets $154,000 The company's management is evaluating a couple of options to finance the acquisition of new equipment with a cost of $33 million * Your answer is incorrect. Taube has a cash balance of $19 million as of December 31, 2020. Determine the debt to equity ratio and net debt as a percentage of total capitalization ratio. Assume that only the company's long-term liabilities are interest bearing. (Round answers to 2 decimal places, e.g. 1.25.) Debt to Equity 0.9:1 Net Debt as a Percentage of Total Capitalization 0.47:1 e Textbook and Media X Your answer is incorrect. Taube is considering borrowing $33 million by taking out a six-year bank loan that carries 10% interest payable semi-annually. Determine the company's debt to equity and debt as a percentage of total capitalization ratios if it decides to borrow the money and purchase the equipment. (Round answers to 2 decimal places, e.g. 1.25.) Debt to Equity :1 :1 Net Debt as a Percentage of Total Capitalization e Textbook and Media x Your answer is incorrect. As an alternative to the bank loan, management is considering issuing $33 million six-year bonds. The bonds pay 3% interest semi-annually and would be issued at 90.61 to yield 8%. Determine the company's long-term debt to equity and debt as a percentage of total capitalization ratios if it decides to borrow money using bonds and purchase the equipment. (Round answers to 2 decimal places, eg. 1.25.) Debt to Equity :1 Net Debt as a Percentage of Total Capitalization :1 e e Textbook and Media Current Attempt in Progress The statement of financial position as of December 31, 2020, for Taube Corporation follows: (all amounts in thousands) Assets Current assets Non-current assets $60.000 94,000 Liabilities and Shareholders' Equity Current liabilities $27,000 Long-term liabilities 46,000 Shareholders' equity 81,000 Total liabilities and shareholders' equity $154,000 Total assets $154,000 The company's management is evaluating a couple of options to finance the acquisition of new equipment with a cost of $33 million * Your answer is incorrect. Taube has a cash balance of $19 million as of December 31, 2020. Determine the debt to equity ratio and net debt as a percentage of total capitalization ratio. Assume that only the company's long-term liabilities are interest bearing. (Round answers to 2 decimal places, e.g. 1.25.) Debt to Equity 0.9:1 Net Debt as a Percentage of Total Capitalization 0.47:1 e Textbook and Media X Your answer is incorrect. Taube is considering borrowing $33 million by taking out a six-year bank loan that carries 10% interest payable semi-annually. Determine the company's debt to equity and debt as a percentage of total capitalization ratios if it decides to borrow the money and purchase the equipment. (Round answers to 2 decimal places, e.g. 1.25.) Debt to Equity :1 :1 Net Debt as a Percentage of Total Capitalization e Textbook and Media x Your answer is incorrect. As an alternative to the bank loan, management is considering issuing $33 million six-year bonds. The bonds pay 3% interest semi-annually and would be issued at 90.61 to yield 8%. Determine the company's long-term debt to equity and debt as a percentage of total capitalization ratios if it decides to borrow money using bonds and purchase the equipment. (Round answers to 2 decimal places, eg. 1.25.) Debt to Equity :1 Net Debt as a Percentage of Total Capitalization :1 e e Textbook and Media
