Fields, Incorporated, has the following book value balance sheet: Total Debt and Equity Assets Current assets...

 

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Fields, Incorporated, has the following book value balance sheet: Total Debt and Equity Assets Current assets $115,000,000 Total debt Equity Common stock Capital surplus Accumulated retained earnings $128,000,000 $ 45,000,000 72,000,000 115,000,000 Net fixed assets 245,000,000 Total shareholders' equity $ 232,000,000 Total assets $360,000,000 Total debt and shareholders' equity $360,000,000 a. What is the debt-equity ratio based on book values? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.) b. Suppose the market value of the company's debt is $129.5 million and the market value of equity is $660 million. What is the debt-equity ratio based on market values? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.) Fields, Incorporated, has the following book value balance sheet: Total Debt and Equity Assets Current assets $115,000,000 Total debt Equity Common stock Capital surplus Accumulated retained earnings $128,000,000 $ 45,000,000 72,000,000 115,000,000 Net fixed assets 245,000,000 Total shareholders' equity $ 232,000,000 Total assets $360,000,000 Total debt and shareholders' equity $360,000,000 a. What is the debt-equity ratio based on book values? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.) b. Suppose the market value of the company's debt is $129.5 million and the market value of equity is $660 million. What is the debt-equity ratio based on market values? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.)

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a To calculate the debtequity ratio based on book values Debt... View the full answer