Question
PROBLEM 4-2: Debt to Capital Ratio Kayes Kitchenware has a market/book ratio equal to 1. Its stock price is $12 per share and it has
PROBLEM 4-2: Debt to Capital Ratio Kayes Kitchenware has a market/book ratio equal to 1. Its stock price is $12 per share and it has 4.8 million shares outstanding. The firms total capital (TIC) is $110 million, and it finances with only debt and common equity. What is its debt-to-capital ratio? Hint: Total Invested Capital = Debt + Equity What is its Total Debt?
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Introduction To Derivatives And Risk Management
Authors: Robert Brooks, Don M Chance
9th Edition
1133190197, 978-1133190196
