Cavalier Copper Mines has $840 million in total liabilities and $520 million in shareholders equity. It discloses

Question:

Cavalier Copper Mines has $840 million in total liabilities and $520 million in shareholders’ equity. It discloses operating lease commitments over the next five years with a present value of $100 million. If the lease commitments are treated as debt, the debt-to-total-capital ratio is closest to:

A. 0.58.

B. 0.62.

C. 0.64.

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First lets identify the numbers we have and the numbers we need 1 Total liabilities 840 ...View the full answer

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