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Please show all work (6p) Rocket Engineering Inc. has the following book value balance sheet: Assets Current assets $ 195,000,000 $ 237,000,000 Total Debt and
Please show all work
(6p) Rocket Engineering Inc. has the following book value balance sheet: Assets Current assets $ 195,000,000 $ 237,000,000 Total Debt and Equity Total debt Equity Common stock Capital surplus Accumulated retained earnings Total shareholders' equity $ 45,000,000 88,000,000 190,000,000 Net fixed assets 365,000,000 323,000,000 Total assets $ 560,000,000 Total debt and shareholders' equity $ 560,000,000 i. What is the debt-equity ratio based on book values? ii. Suppose the market value of the company's debt is $238.2 million and the market value of equity is $740 million. What is the debt- equity ratio based on market valuesStep by Step Solution
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