Kaye's Kitchenware has a market/book ratio equal to 1. Its stock price is $16 per share...

50.1K

Verified Solution

Question

Finance

Kaye's Kitchenware has a market/book ratio equal to 1. Its stockprice is $16 per share and it has 5.5 million shares outstanding.The firm's total capital is $125 million and it finances with onlydebt and common equity. What is its debt-to-capital ratio? Roundyour answer to two decimal places.

Answer & Explanation Solved by verified expert

4.3 Ratings (610 Votes)

Solution As per the information given in the question we have Stock price per share 16 per share No of shares outstanding 5500000 Thus the market value of equity 16 5500000 88000000 See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member

Transcribed Image Text

Kaye's Kitchenware has a market/book ratio equal to 1. Its stockprice is $16 per share and it has 5.5 million shares outstanding.The firm's total capital is $125 million and it finances with onlydebt and common equity. What is its debt-to-capital ratio? Roundyour answer to two decimal places.

Kaye's Kitchenware has a market/book ratio equal to 1. Its stock price is $16 per share...

50.1K

Verified Solution

Question

Finance

Kaye's Kitchenware has a market/book ratio equal to 1. Its stockprice is $16 per share and it has 5.5 million shares outstanding.The firm's total capital is $125 million and it finances with onlydebt and common equity. What is its debt-to-capital ratio? Roundyour answer to two decimal places.

Answer & Explanation Solved by verified expert

Get Answers to Unlimited Questions

Membership Benefits:

Transcribed Image Text

Other questions asked by students