Question: I need help with this please. I am getting part B wrong. Thank you in advance. Calculating the Debt Ratio and the Debt-to-Equity Ratio Klynveld

I need help with this please. I am getting part B wrong. Thank you in advance.

Calculating the Debt Ratio and the Debt-to-Equity Ratio

Klynveld Companys balance sheet shows total liabilities of $94,000,000, total stockholders equity of $75,000,000, and total assets of $169,000,000.

Required:

1. Calculate the debt ratio. Round the debt ratio to the nearest percent. 56% is CORRECT

2. Calculate the debt-to-equity ratio. Round your answer to two decimal places. 125 is wrong

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  1. Debt Ratio = Total Liabilities / Total Assets
  2. Debt-to-Equity Ratio = Total Liabilities / Total Stockholders Equity

Review the "How to Calculate the Debt Ratio and the Debt-to-Equity Ratio" example in your text.

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