Question: Using the information provided for eBay, calculate the debt-to-equity ratio at December 31, 2007, and December 31, 2008. (Notice that eBay puts the most recent

Using the information provided for eBay, calculate the debt-to-equity ratio at December 31, 2007, and December 31, 2008. (Notice that eBay puts the most recent year in the right column rather than the usual left column.)

Provide an explanation of what this ratio measures and whether the ratio has improved from 2007 to2008.

From the Consolidated Balance Sheet of eBay Inc December 31 2007 2008 (dollars in thausands) Assets Total current assets Total assets. 7122,505 6286,590 $15366,037 S15,592,439 Liabilities and stockholders' equity Total current liabilities Total liabilities Total stockholders' equity Total liabilities and stockholders' equity 3,099,579 3,705,087 3,661,435 4,608,581 11,704,602 11,083,858 $15,366,037 $15,592,439

Step by Step Solution

★★★★★

3.33 Rating (168 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

The debttoequity ratio is a measure of the extent to which the firm is leveraged This ra... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

323-B-A-L (4234).docx

120 KBs Word File

Students Have Also Explored These Related Accounting Questions!

Calculate the debt to equity ratio for Blue Line Studio Inc. Below is an excerpt from their balance sheet line items: Current liabilities 342,000 Long-term debt 688,000 Total equity 750,000 a....

Using the information provided in BE4- 7, assume that Jones Journals is now in its second year of operations. In the second year, Jones incurred a net loss of $ 124,000 and paid out no dividends....

Using the information provided in BE 6- 6, prepare a classified balance sheet using the account format. In BE 6- 6 Debit Credit Account Accounts receivable Bonds payable, due in 20 years Investments...

Starbucks (SBUX) and Dunkin Donuts (DNKN). Use the most recent year's data. I personally like to get this data from www.morningstar.com but sites such as Yahoo Finance, Marketwatch or the companies...

The Brown Company was incorporated on January 2, 2018 and has 10 stockholders. The Brown Company is a law firm. The Brown Company's address is 7900 W. Division Street; River Forest, Illinois 60605....

i need help with this accounting HW questions.There are a total of 5 1. Product Costing in a JIT/Lean Environment Doll Computer manufactures laptop computers under its own brand, but acquires all the...

McMahan, LTD. provided the following data for 2008 and 2009: Inventory December 31, 2007 $178,000 December 31, 2008 185,000 December 31, 2009 193,000 Cost of goods sold 2008 $544,000 2009 592,000...

Calculate the debt-to-equity ratio. (LO 6). Using the information provided for eBay, calculate the debt-to-equity ratio at December 31, 2007, and December 31, 2008. (Notice that eBay puts the most...

This is a comprehensive payroll problem that must be completed in the Excel worksheet provided. I have attached the excel template and the IRS Publication 15 Document that is needed to complete the...

I need help with how to do a DCF analysis for this Spotify case. Please can you show the explanation of the steps Thank you A. Using the information provided, what should SPs shares be trading at on...

An area can be irrigated by pumping water from a nearby river. Two competing installations are being considered. The MARR is 12% per year and electric power for the pumps cost $0.06 per kWh. Recall...

Consider the following 10 observations on the lifetime (in hours) for a certain type of component: Construct a normal probability plot, and comment on the plausibility of a normal distribution as a...

As an estate planning measure Fred and Wilma are tiling their new family car in the name of a trust Fred and Wilma would be well advised to take all of the following steps except a add a trust...

Wind erosion is particularly dangerous during periods of ________________ .

Expensing research and development costs raises accounting quality issues similar to those raised in cash accounting. Explain.

You invest $100 (at time 0) and expect to receive $115 in cash in one year. Your required return is 9 percent. a. Calculate the value of your investment at time 0 using discounted cash flow...

Here are some details of an investment in a project with a two-year life and a required return of 9 percent per year. Dollar amounts are in millions. Initial investment in equipment...........$1,500...

The Grilton Tire Company manufactures racing tires for bicycles. Grilton sells tires for $50 each. Grilton is planning for next year by developing a master budget by quarters. Griltons balance sheet...

Antioch Company makes eBook readers. The company had the following amounts at the beginning of 2018 Cash, $671,000; Raw Materials Inventory, $69,000, Work in Process Inventory, $34,000, Finished...

In a survey of603 adults,98 said that they regularly lie to people conducting surveys. Create a99% confidence interval for the proportion of adults who regularly lie to people conducting surveys. Use...