Question
Neal Enterprises has no debt. Its current total value is $72.8 million. Assume the company sells $33.4 million in debt. Requirement 1: Ignoring taxes, what
| Neal Enterprises has no debt. Its current total value is $72.8 million. Assume the company sells $33.4 million in debt. |
| Requirement 1: |
| Ignoring taxes, what is the debt-equity ratio? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) |
| Debt-equity ratio |
| Requirement 2: |
| Assume the companys tax rate is 40 percent. What is the debt-equity ratio? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) |
| Debt-equity ratio |
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World Finance Since 1914
Authors: Paul Einzig
1st Edition
0415539471, 978-0415539470
