Question
Kayes Kitchenware has a market/book ratio (market value of equity/book value of equity) equal to 1. Its stock price is $12 per share and it
Kayes Kitchenware has a market/book ratio (market value of equity/book value of equity) equal to 1. Its stock price is $12 per share and it has 4.8 million shares outstanding. The firms total capital is $110 million and it finances with only debt and common equity. What is its debt-to-capital ratio?
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Theoretical Foundations For Quantitative Finance
Authors: Luca Spadafora, Gennady P Berman
1st Edition
9813202475, 978-9813202474
