Debt Ratios Question

***Please use these formulas***

The statement of financial position as of December 31, 2020. for Taube Corporation follows: (all amounts in thousands) Assets Current assets $62,000 Non-current assets 100,000 Liabilities and Shareholders' Equity Current liabilities $25,000 Long-term liabilities 45.000 Shareholders' equity 92,000 Total liabilities and shareholders' equity $162,000 Total assets $162,000 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 $20 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, eg. 1.25.) Debt to Equity 0.76 -1 Net Debt as a Percentage of Total Capitalization 0.31 e Textbook and Media Assistance Used * Your answer is incorrect. Taube is considering borrowing 533 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, eg. 1.25.) Debt to Equity 1.12 -1 Net Debt as a Percentage of Total Capitalization 0.43 -1 Debt to Equity = Shareholders Equity Net Debt ' Interest-Bearing Debt Cash or = Shareholders' Equity 1 Net Debt as a Percentage of Total Capitalization Net Debt Total Capitalization Interest-Bearing Debt - Cash Shareholders' Equity + Interest-Bearing Debt - Cash