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Cullen Anleitplin Progress The statement of financial position as of December 31, 2020 for Taube Corporation follows: Call amounts in thousands) Assets Liabilities and Shareholders' Equity Current assets $69.000 Current liabilities $25,000 Non-current assets 107.000 Long-term liabilities 46,000 Shareholders equity 105.000 Total liabilities and shareholders' equity Total assets $176,000 $176,000 The company's management is evaluating a couple of options to finance the acquisition of new equipment with a cost of $38 million x Your answer is incorrect. 30C Alert O TI ype here to search The company's management is evaluating a couple of options to hnance the acquisition of new equipment with a cost of $38 million X Your answer is incorrect. Taube has a cash balance of $19 million as of December 31, 2020. Determine the debt to equity ratio and net debt as a percentage of total capitalization ratio. Assume that only the company's long-term liabilities are interest bearing. (Round answers to 2 decimal places, e.g. 1.25.) 1 0.45 Debt to Equity 0.34 1 Net Debt as a Percentage of Total Capitalization e Textbook and Media x 30C All O II x Your answer is incorrect. Taube is considering borrowing $38 million by taking out a six-year bank loan that carries 10% interest payable semi-annually Determine the company's debt to equity and debt as a percentage of total capitalization ratios if it decides to borrow the money and purchase the equipment. (Round answers to 2 decimal places, eg, 1.25) Debt to Equity 104:1 Net Debt as a Percentage of Total Capitalization 0.48 01 e Textbook and Media X Your answer is incorrect As an alternativt the bank loan management sannsidering issuing millions overhoads The bands into O RI Tch 30C Alert A hp * Your answer is incorrect: As an alternative to the bank loan, management is considering issuing $38 million six-year bonds. The bonds pay 3% interest semi-annually and would be issued at 90.61 to yield 8%. Determine the company's long-term debt to equity and debt as a percentage of total capitalization ratios if it decides to borrow money using bonds and purchase the equipment. (Round answers to 2 decimal places, eg. 1.25.) 1 :1 Debt to Equity 0.55 Net Debtas a Percentage of Total Capitalization e Textbook and Media Your answer is partially correct 3 30C Alert A ch 0 hip e Textbook and Media Your answer is partially correct. Which of options "bank loan"(b) or "bonds" (C) is the better option for Taube and why? The bonds would be a better option as they would have a highernet debt is a percentice of total coitalization, e Textbook and Media Attempts: 3 of 5 used Sumit Answer Save for Later 30C Alert AD E O hp

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