Part 1

What is the debt-equity ratio (using book values)?

Part 2

What is the debt-to-capital ratio (using book values)?

Part 3

What is the debt-to-enterprise value ratio?

Intro Use the following information to answer the questions: Assets Cash Marketable securities Accounts receivable Inventory Current assets Machines Real estate Net fixed assets Total assets 14,000 2,000 6,000 24,000 46,000 34,000 80,000 114,000 160,000 Liabilities and Equity Accounts payable 16,000 Notes payable 6,000 Current liabilities 22,000 Long-term debt 95,000 Total liabilities 117,000 Paid-in capital 20,000 Retained earnings 23,000 Equity 43,000 Total liab. & equity 160,000 The company has 15,900 shares outstanding, each trading at $5.41. Line item Value Sales 81,000 Costs 66,420 Depreciation 2,000 EBIT 12,580 Interest 800 Taxable income 11,780 Taxes 3,887 Net income 7,893