Question: Given the below data, what is the debt-to-capital ratio? Measure capital at book value, not market value Income Statement Data Yr. 3 Balance Sheet Data

 Given the below data, what is the debt-to-capital ratio? Measure capital

Given the below data, what is the debt-to-capital ratio? Measure capital at book value, not market value Income Statement Data Yr. 3 Balance Sheet Data Yr. 3 Revenues Cash and Cash 4,800 Equivalents 25 COGS 3,200 Short term Investments 25 SG&A Expense 1,200 Accounts Receivable 400 Depreciation Expense 150 Inventory 620 Operating Income (EBIT) 250 Total Current Assets 1,070 Interest Expense 38 Total Assets 3,270 Pre Tax Income 212 Accounts Payable 440 Tax Expense 75 Total Current Liabilities 700 Net Income 137 Interest Bearing Debt 500 Dividends per Share 0.6 Owners' Equity 2,000 Number of Shares Outstanding 100 Cash Flow Data Yr. 3 Other Items Operating Cash Flow 400 Beta 1.0 Capital Expenditures -140 Net Change in Interest Bearing Debt Year End Stock Prices 150 (EYE): $30.00 Dividends paid -60 Year 3 $25.00 Share repurchases (in $) -200 Year 2

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