DEF company balance sheet shows $400 million in liabilities, $400 million in stockholders' equity, and a total book value of its assets of $800 million. The market value of its debt is $500 million. There are 100 million shares outstanding with a share price of $15. Calculate the debt ratio of the company.

Answer rating: 100% (QA)

Calculating Debt Ratio for DEF Company 1 Book Value Debt to Equity Ratio We can calculate the book v... View the full answer