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Thrillville has $40.5 million in bonds payable. One of the contractual agreements in the bond indenture is that the debt to equity ratio cannot exceed
Thrillville has $40.5 million in bonds payable. One of the contractual agreements in the bond indenture is that the debt to equity ratio cannot exceed 2.0. Thrillvilles total assets are $80.5 million, and its liabilities other than the bonds payable are $10.5 million. The company is considering some additional financing through leasing. 1. Calculate total stockholders' equity using the balance sheet equation. 2.Calculate the debt to equity ratio.
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