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Listed below is the ACME Toy Company's Liabilities and Owner's Equity Section from their financial statements. a. What is the company's debt ratio and interest-bearing
Listed below is the ACME Toy Company's Liabilities and Owner's Equity Section from their financial statements. a. What is the company's debt ratio and interest-bearing debt ratio? b. If the market value of the company is $150 million dollars, what is the firm's debt to value ratio? (Assume the market value of the firm's interst-bearing debt equals its book value) Liabilities Current liabilities \begin{tabular}{l|r} \multicolumn{1}{c|}{ AP } & 25,000,000 \\ \multicolumn{1}{c|}{ Current Debt } & 5,000,000 \\ \cline { 2 - 2 } & 30,000,000 \\ \hline Total Current Liabilities & 75,000,000 \\ Long Term Debt & 22,500,000 \\ \hline Stockholder's Equiity & 127,500,000 \\ \hline \end{tabular}
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