the book value of General Mecanic' s equity is equal to 116 billion dollars, with 10.6 billions shares outstanding, each having a price of 17$. General Mecanic's cash reserves amount to 84 billion dollars and its total debt equals 410 billion dollars.

How much is the leverage ratio? You will successively provide the leverage based on the book value and the market value of the equity?

The answer is 3.53 ( based on BV) and 2.28 ( based on market)

Question: Can you explain the answer in details? What is the cash reserves? To calculate the Net financial debt, could I use total debts - cash reserves? Thanks