• • Karsan Otomativ had 556 million shares outstanding with a book value of $41.0 per share in 2021. The market price of a share was $158.80. Karsan Otomativ had a long term debt of $16.80 that was selling at par.

    a. Calculate Karsan Otomativ's book debt-to-value (D/V) ratio.

    (Intermediate calculations should not be rounded. Enter your answer as a decimal rounded to 2 decimal places.)

    b. Calculate Karsan Otomativ's market debt-to-value (D/V) ratio.

    (Intermediate calculations should not be rounded. Enter your answer as a decimal rounded to 2 decimal places.)

    c. Which of the above is an appropriate measure to use when determining a company's cost of capital?

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Answer rating: 100% (QA)

Calculating DebttoValue Ratios for Karsan Otomativ a Book DebttoValue DV Ratio Calculate total book ... View the full answer