Question
Problem 13-15 M&M [LO 1] Neal Enterprises has no debt. Its current total value is $45 million. Assume the company sells $16 million in debt.
Problem 13-15 M&M [LO 1]
| Neal Enterprises has no debt. Its current total value is $45 million. Assume the company sells $16 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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Remittances And International Development
Authors: Sabith Khan, Daisha Merritt
1st Edition
0367521881, 978-0367521882
